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: Whether an employer should provide a T2200, "Declaration of Conditions of Employment," to its employees who travel from their homes to work and vice versa.
Position: No.
Reasons: It is our view that travel between the employee's home and place of work is personal travel. (See paragraph 14 of IT-522R.)
XXXXXXXXXX J. Gibbons, CGA
2001-007087
April 11, 2001
Dear XXXXXXXXXX:
We are replying to your facsimile dated February 19, 2001, in which you requested our views whether XXXXXXXXXX (the "Company") should provide a T2200, "Declaration of Conditions of Employment," to an employee in the situation described below. We also acknowledge our telephone conversation on March 30, 2001.
As indicated in paragraph 22 of Information Circular 70-6R4 dated January 29, 2001, a request for a written opinion on a completed transaction is generally considered by a taxpayer's local tax services office. Accordingly, you may wish to submit all relevant facts and documentation to the appropriate Tax Services Office for their comments. However, we offer the following general comments for your benefit.
Facts
XXXXXXXXXX
Employees have asked the Company to provide signed T2200's so that they can claim travel expenses, including the $XXXXXXXXXX a day they pay when they stay and live in camp as well as the cost of other meals.
It appears that the employees wish to claim travel expenses and motor vehicle expenses pursuant to paragraphs 8(1)(h) and (h.1) of the Income Tax Act (the "Act") respectively. Pursuant to subsection 8(10) of the Act, unless an employee obtains a signed T2200 from the employer, the employee cannot claim a deduction for travelling expenses under these particular provisions. (See paragraph 58 of IT-522R, "Vehicle, Travel and Sales Expenses of Employees," a copy of which can be obtained on our website at www.ccra-adrc.gc.ca.)
In providing a certified T2200 for a taxation year, an employer is certifying that the conditions set out in the particular provisions were met by the employees for that year. In order for the employee to claim travel expenses under paragraph 8(1)(h), the Company would have to certify on the T2200 that the employee was: (i) ordinarily required to carry on the duties of the office or employment away from the employer's place of business or in different places, and (ii) was required under the contract of employment to pay the travel expenses incurred by the employee in the performance of the duties of the office or employment. In order for the employee to claim motor vehicle expenses under paragraph 8(1)(h.1), the Company would have to certify on the T2200 that the employee was:
(i) ordinarily required to carry on the duties of the office or employment away from the employer's place of business or in different places, and
(ii) was required under the contract of employment to pay the motor vehicle expenses incurred in the performance of the duties of the office or employment.
It is our view that travel between the employee's home and place of work is personal travel. (See paragraph 14 of IT-522R.) Accordingly, travel and motor vehicle expenses incurred by the truck drivers in driving between their homes and the central garage would not be considered to have been "incurred in the performance of the duties of the office or employment." As regards the trips from the central garage to the Company's other location, the Company provides the motor vehicles and the fuel, so the only expenses incurred by the truck drivers would be the cost of their meals. Pursuant to subsection 8(4) of the Act, unless an employee is required to be away, for a period of at least twelve hours, from the municipality and the metropolitan area in which the employer's establishment is located, the employee may not deduct the cost of meals consumed while away from home in the course of performing the duties of employment. Since you stated that this is not the case, it is our view that the truck drivers would not be entitled to deduct travel expenses.
Based on the foregoing, we see no reason why you should certify T2200's for your truck drivers. If you and your employees cannot agree on this issue, we suggest that you contact officials in your local tax services office to assist you in this matter.
We trust that these comments will be of assistance.
Yours truly,
John Oulton, CA
for Director
Business and Partnerships Division
Income Tax Rulings Directorate
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