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Meal expenses Although meals are generally considered to be a personal or living expense, paragraph 18(1)(h) of the Act identifies an exception to this rule with respect to travel expenses incurred by a taxpayer while away from home in the course of carrying on the taxpayer's business. In other words, even though meals or accommodation would normally be considered a personal or living expense, paragraph 18(1)(h) of the Act permits a deduction for such expenses if they are incurred for the purpose of earning income from business and while away from home in the course of carrying on that business. ...

The legal form of transactions must be considered in determining the application of the Income Tax Act ("Act"). ... Paragraph 12(1)(x) provides, inter alia, that a taxpayer must include in calculating his income from property, the amount he received in the course of earning income from property from a person who pays the amount in the course of earning income from a business or property where the amount can reasonably be considered to have been received as an inducement. ...

With respect to associated corporations, paragraph (d) of the definition of "personal services business" in subsection 125(7) of the ITA provides that a corporation is not considered as carrying on a personal services business if the amount paid or payable to the corporation in the year for the services is received or receivable by it from a corporation with which it was associated in the year. Accordingly, in the situation described in question 4.1 of the Round Table of the 1994 APFF Conference, we are of the view that to the extent that Opco and Investco are associated, Investco would not be considered as carrying on a personal services business. ...

The requirements that a HCSA must meet to be considered a PHSP are discussed in more detail in paragraphs 14 to 18 of Interpretation Bulletin IT-529, Flexible Employee Benefit Programs. ... However, a plan will not be considered a PHSP if it allows participating employees: 1) who have no allocation to a particular component of the plan in the prior year to carry those expenses forward or back to another year; or 2) to allocate a nominal amount to a particular component of a plan in a year merely to allow the carry forward of excess expenses into another plan year. ...

The following comments concerning the timing of the payment of a retiring allowance and severance payment are contained in paragraph 7 of IT-337R4: "Where an individual continues to accrue salary and benefits until a date that is subsequent to the date the individual ceases to report to work, the retirement or the loss of office or employment, as the case may be, will be considered to take place only at the later date. ... For a payment in advance of the loss of an office or employment to be considered a retiring allowance, there must be evidence that the loss is not speculative or contingent, and that the severing of the employment relationship, including the cessation of all employment benefits, will occur on a specific date. ...

When a meal allowance is paid after 2 hours of overtime but before 3 hours of overtime, it is generally considered a taxable benefit. 2006-021580 XXXXXXXXXX Kathryn McCarthy, CA (613) 948-6106 May 15, 2007 Dear XXXXXXXXXX: Re: Overtime Meal Allowance This is in response to your e-mail of November 27, 2006 inquiring about the above noted subject matter. ... Pursuant to paragraphs 6(1)(a) and (b) of the Income Tax Act, if a meal is provided or subsidized by an employer, it is considered to be a taxable benefit to the employee. ...

Generally, a post-doctoral fellowship does not lead to a degree and therefore a course taken by a post-doctoral fellow cannot be considered to lead to a degree. 2007-022887 XXXXXXXXXX Eliza Erskine (613) 274-3022 May 1, 2007 Dear XXXXXXXXXX: Re: Fellowship Income and Exemption Under Subsection 56(3) of the Income Tax Act (the "Act") This is in response to your electronic correspondence of March 27, 2007, asking whether the full amount of your XXXXXXXXXX post-doctoral fellowship is exempt from income tax under subsection 56(3)of the Act ("the scholarship exemption"). ... Therefore, although we are in no way confirming that these criteria are met in your situation, we will restrict our comments in this letter to whether a post-doctoral fellow at a university outside Canada is eligible for the ETC and, in particular, to whether a university outside Canada can be considered a "designated educational institution" for such an individual. ...

To the best of your knowledge, none of the issues involved in the ruling request is: in an earlier return of yourself or a related person, being considered by a tax services office or taxation center in connection with a previously filed tax return of yourself or a related person, under objection by yourself or a related person, before the courts or, if a judgment has been issued, the time limit for appeal to a higher court has not expired, or the subject of a ruling previously considered by the Directorate in respect of yourself or a related person. ...

Our Comments Generally, the cost of a golf club membership provided to an employee is considered to be a taxable benefit included at 100% of fair market value in the employee's income, even though the dues or fees are not deductible by the employer pursuant to paragraph 18(1)(l) of the Act. ... Factors that may be considered include the following: Could the employee have performed the job as well without the membership? ...

As per the decision in Shell Canada Ltd v The Queen, [1999] 4 CTC 313, and as further supported by The Queen v Singleton, [2002] 1 CTC 121, it is the direct current use of the borrowed money that must be considered in determining whether the purpose test in subparagraph 20(1)(c)(i) is met. Furthermore, in Singleton, it was held that where a sequence of transactions is being considered, it would be incorrect to treat the entire sequence as one simultaneous transaction. ...