2 January 2001 Internal T.I. 2000-0040837 - STANDBY CHARGE EMERGENCY VEHICLES

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 the exception in paragraph 5 of IT-63R5 will apply to a work location to which an employee reports with some regularity.

Position: No.

Reasons: The fact that an employee has a home location to which he or she reports to more frequently than others does not affect the status of another work location as a regular work location.

		January 2, 2001

	HALIFAX TAX SERVICES OFFICE	HEADQUARTERS
	Business Window	J. Gibbons
(613) 957-2135
	Attention: Angus MacIsaac
		2000-004083

Standby Charge Exception

We are replying to your facsimile of August 3, 2000, concerning a letter you wrote to XXXXXXXXXX on the application of the exception to the standby rules in paragraph 5 of IT-63R5. You wish to know whether your letter to XXXXXXXXXX is consistent with the Agency's current position.

We have reviewed your letter to XXXXXXXXXX and are of the view that it is generally consistent with our current position. That is, where an employee reports with some regularity to one of the employer's different work locations, it is likely that such a work location can be considered a regular work location. Accordingly, the exception in paragraph 5 would not apply to exclude the travel to this particular location from personal use. The fact that an employee has a home location to which he or she reports to more frequently than others does not affect the status of another work location as a regular work location.

The letter of June 6, 2000, from XXXXXXXXXX, indicated that XXXXXXXXXX wanted to provide vehicles to employees to improve the response time for emergency calls. XXXXXXXXXX also enquired about the "number of after hour calls an employee is expected to answer to evoke the exception and therefore not attract a taxable benefit on the otherwise personal use of a company automobile." From this, we understand that XXXXXXXXXX believes that if an employee is required to make a certain number of after hour calls, the employee will not be assessed a personal benefit for any personal use of the employer's vehicle. In this regard, you should note our position that the requirement for an employee to have an employer's vehicle available at all times does not diminish the benefit received by that employee in being able to travel between home and the regular place of work in an employer-provided vehicle. Further, paragraph 5 of IT-63R5 exempts only the trip to a point of call (or home again) in determining personal use - any other use of the employer's vehicle in travelling to and from the employee's home will still be considered personal use. This exception does not apply to a point of call that is a regular work location.

For your information a copy of this memorandum will be severed using the Access to Information Act criteria and placed in the Legislation Access Database (LAD) on the Agency's mainframe computer. A severed copy will also be distributed to the commercial tax publishers for inclusion in their databases. The severing process will remove all material that is not subject to disclosure, including information that could disclose the identity of the taxpayer. Should your client request a copy of this memorandum, they can be provided with the LAD version, or they may request a copy severed using the Privacy Act criteria, which does not remove client identity. Requests for this latter version should be made by you to Jackie Page at 613 957-0682. The severed copy will then be sent to you for delivery to the client.

John Oulton
for Director
Business and Publications Division
Income Tax Rulings Directorate
Policy and Legislation Branch