Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues:
The issue is whether allowances received by employees in respect of travel to and from work are taxable.
Position TAKEN:
The allowances are taxable.
Reasons FOR POSITION TAKEN:
They are described in paragraph 6(1)(b) and do not satisfy the wording of any of the exceptions.
943026
XXXXXXXXXX M. Eisner
Attention: XXXXXXXXXX
March 28, 1995
Dear Sirs:
Re: Travelling Expenses
This is in reply to your letter of November 16, 1994 in which you asked us whether payments made to certain employees in respect of travel are taxable. We apologize for the delay in replying.
At the outset, we wish to acknowledge our telephone conversation on February 25, 1995 in which we obtained clarification of the circumstances of your situation.
Your concern relates to certain individuals (educational consultants) who are employed by the XXXXXXXXXX from September 1 to June 30 under a 10 month employment contract. During the summer months of July and August, they may also be employed by the Board with respect to special projects. The employment duties with respect to special projects are carried out at the Board office and under the related employment contract, a consultant is entitled to be paid an amount with respect to the use of his or her vehicle in travelling between the consultant's residence and the Board office. The amount paid to a consultant is determined on a cents-per-kilometre basis.
As indicated in paragraph 5 of Interpretation Bulletin IT-63R4 which has been enclosed, it is the Department's position that travel between an employee's residence and place of work is personal in nature. Accordingly, the amounts paid to a consultant in respect of such travel while carrying out special projects are required to be included in the consultant's income from employment.
We trust our comments will be of assistance to you.
Yours truly,
P.D. Fuoco
for Director
Business and General Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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