19 February 1988 Income Tax Severed Letter

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.

February 19, 1988

SURREY TAXATION CENTRE

HEAD OFFICE - APPEALS BRANCH Appeals & Referrals Division P. Bush 957-2219

T. Weisser Appeals Division

Moving Expenses

We are replying to your referral dated June 10, 1987, concerning the above-referenced matter. Please excuse the delay in our response which was caused by a heavy workload situation.

As we understand it, you have received some Notices of Objection involving situations where taxpayers moved to their new residence in more than one trip. They claimed that in the circumstances, the cost of moving in one trip would have been more expensive than making several trips. The taxpayers were only allowed expenses incurred while travelling from the old residence back to the new one. Those expenses incurred while returning from the new residence to the old one to pick up the remaining belongings were disallowed, apparently on the rationale that paragraph 62(3)(b) of the Act permits the deduction of only those expenses incurred "in the course of moving from his old residence to his new residence". A similar restriction exists in paragraph 62(3)(a) dealing with travelling costs incurred.

We are not aware of any Departmental assessing policy supporting the foregoing interpretation of the Income Tax Act. We contacted Head Office Assessing and Enquiries Directorate who also were not aware of any policy statements in this regard.

It is our opinion that the relevant phrase in both subsections of the Income Tax Act is "in the course of moving from his old residence to his new residence" and that the relevant legislation should be read in a "words in total context" approach as set out in Lor-Wes Contracting Ltd. v. The Queen (85 DTC 5310). Accordingly, provided that the moving expenses otherwise met the requirements as set out in IT-178R2 , we believe they should be allowed.

We are returning the Orange File Folders of XXXX and XXXX.

Section Chief Appeals & Referrals Division

PB/ltb

Encl.

c.c. (1) section 62(3) research files
       (2) J. Rutherford
            Assessing & Enquiries Directorate