Paragraph 6(1)(b) - Personal or living expenses
Cases
Bériault v. Canada, 2004 DTC 6522, 2003 FCA 430
A lump sum of $65,120 that the taxpayer received from his employer as a result of his transfer from Montreal to Toronto was an allowance within...
Rio v. Canada (Attorney General), 2004 DTC 6079, 2003 FCA 396
Payments to the taxpayer of a monthly accommodation allowance, a monthly cost of living allowance and a "monthly function" allowance while he was...
The Queen v. Côté, 99 DTC 5788, 1999 CanLII 8469 (FC) (FCTD)
The taxpayer, who was a senior Quebec civil servant, was taxable on a lump sum equal to four weeks' salary that compensated him for expenses of a...
Verdon v. The Queen, 98 DTC 6175 (FCA)
The taxpayer received a meal allowance of $1,440 per year which was calculated and advanced, based on past experience, at $7 per meal, four days...
Attorney General of Canada v. MacDonald, 94 DTC 6262, [1994] 2 CTC 48 (FCA)
A monthly housing subsidy of $700 that was payable to an RCMP member as a result of his relocation to Toronto was taxable under s. 6(1)(b) because...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 5 - Subsection 5(1) | 82 |
Blanchard v. The Queen, 92 DTC 6585, [1992] 2 CTC 403 (FCTD)
The taxpayer would not have accepted employment at Fort McMurray if his employer had not provided an arrangement under which a nominee of the...
Splane v. The Queen, 90 DTC 6442, [1990] 2 CTC 199 (FCTD), briefly aff'd 92 DTC 6021 (FCA)
The taxpayer, who was asked by his employer to relocate from Ontario to Alberta, sold his home in Smith Falls for $65,000 and purchased a home...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) | payment of increased house mortgage interest merely reimbursed for a loss | 112 |
The Queen v. Huffman, 90 DTC 6405 (FCA)
By virtue of the collective agreement between the Niagara Regional Police Force and the Niagara Police Association, each plainclothes officer...
See Also
Sénéchal v. The Queen, 2011 DTC 1357 [at 1997], 2011 TCC 365 (Informal Procedure)
The taxpayers were police union representatives. Although they continued to receive their regular remuneration from the police force, they could...
McLay v. MNR, 92 DTC 2260, [1992] 2 CTC 2649 (TCC)
A "transfer allowance", equal to one month's salary, which the taxpayer received from his employer pursuant to a general policy to pay such...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 62 | 100 |
Administrative Policy
4 December 2018 External T.I. 2016-0670851E5 - Regular Places of Employment and Personal Travel
Respecting requested clarification as to when a particular work location is considered a regular place of employment for an employee, CRA stated:
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(6) - Paragraph 6(6)(b) - Subparagraph 6(6)(b)(i) | travel between temporary place of residence and special work site not excluded | 148 |
19 July 2018 External T.I. 2014-0551941E5 F - Déplacement effectué par un employé
An employee who is auditor at an accounting firm must travel to various of the firm's clients in a year for engagements of approximately one to...
13 April 2018 External T.I. 2017-0682891E5 - Taxable benefits
The employer provides fixed monthly payments to school bus drivers to cover such employees’ cost of the use of a personal cellular phone, bus...
28 April 2017 Internal T.I. 2017-0699741I7 - Phoenix - financial advisor funding
Errors in the Phoenix pay system used by the employer resulted in employees being overpaid and/or underpaid in 2016 or 2017, and their T4 tax...
May 2016 Alberta CPA Roundtable, Q.3
2013-0507421E5 indicated that if an individual has multiple regular places of employment (RPE) and travels between them during the day, the trip...
S2-F3-C2 - Benefits and Allowances Received from Employment
Meaning of allowance
2.56 An allowance or an advance is any periodic or lump-sum payment that an employee receives without having to account for...
5 July 2015 External T.I. 2015-0588201E5 F - Apportez vos appareils personnels / BYOD
CRA confirmed its view in 2014-0552731E5 that employees, who were required to use cell phones in the performance of their duties, received a...
7 April 2015 External T.I. 2014-0552731E5 F - Apportez vos appareils personnels / BYOD
Employees, who are required to use cell phones in the performance of their duties and to have their cell phone contracts approved by the employer,...
18 December 2014 External T.I. 2014-0523711E5 F - Allocation pour déménagement - achat de meubles
Mr. X who was employed abroad by Company Y, is relocated to work for Company X (an associated Canadian corporation) at a Canadian location. ...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) | allowance that is capped at documented expenses might not be an allowance/reimbursing new furniture might be taxable benefit | 234 |
2 October 2014 External T.I. 2013-0491411E5 F - Allocation pour une automobile
What is the tax treatment of amounts paid to taxpayers for using their cars in providing lifts for the organization? CRA stated...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 3 | compensation for car rides not received in the course of employment or a business | 184 |
1 October 2014 External T.I. 2013-0476081E5 F - Allocation pour une automobile
The only compensation received by taxpayers from a non-profit organization for transporting, using their own automobiles, people with reduced...
14 February 2014 Internal T.I. 2013-0495661I7 - Taxability of payment from US charitable trust
Monthly allowances received by a former employee of a US charitable trust is not income to him given that they are "financial assistance is based...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(u) | financial assistance to former charity employee | 88 |
5 October 2012 Roundtable, 2012-0454131C6 F - Caractère raisonnable d'une allocation automobile
Have the CRA auditors been directed to consistently treat motor vehicle allowances exceeding the Reg. 7306 limits as unreasonable for s. 6(1)(b)...
30 March 2012 External T.I. 2011-0428741E5 F - Allocations pour frais de déplacement
When an employee (a truck driver) reports to work but must return to the employee’s residence because a truck is not yet available, the employer...
24 April 2012 Internal T.I. 2012-0440711I7 F - Indemnité de repas; remboursement pour déplacement
An employer who does not have a cafeteria or dining room, pays its employees a meal allowance per day worked, which barely covers the cost of food...
27 September 2011 External T.I. 2011-0400141E5 F - Allocations pour frais de déplacement
Employees, who are called upon to travel within the metropolitan area of their usual place of work to meet clients, receive a daily meal allowance...
9 May 2011 External T.I. 2010-0384711E5 F - Avantages imposables
Allowances paid as expense allowances to contract forestry workers to reimburse the gasoline and oil expenses for their tree trimmers and...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(vii) | ATV allowance for foreman’s supervisory use was taxable | 49 |
11 March 2010 External T.I. 2009-0345481E5 F - Allocations versées administrateurs bénévoles
Volunteer directors who attend four meetings a year of the board of directors of a not-for-profit organization do not receive any attendance fees,...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Office | definition of a “volunteer” (who is excluded from the holder of an “office”) | 121 |
19 May 2010 External T.I. 2009-0342651E5 F - Remboursement de dépenses et allocations
Allowances paid in lieu of paying moving or real estate agent expenses are allowances that the employee includes under s. 6(1)(b) except that as...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) | reimbursement for employment-related moving expenses, and reimbursement of accommodation and transportation where employee temporarily assigned away from normal home base, not taxable | 80 |
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(23) | reimbursement of expenses to obtain a mortgage is included | 35 |
30 November 1995 Ruling 9632153 - OPTIONS WITH SAR RIGHTS
Where an existing stock option plan is amended by permitting employees to request cash payment for the value of their stock options, s. 7(1)(b)...
8 February 2010 Internal T.I. 2009-0352721I7 F - Allocations pour frais de repas
Employees who are required to work more than a specified number of hours before or after their shift are paid a meal allowance. Is it a taxable...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(vii) | meaning of regular place of employment | 168 |
7 April 2006 External T.I. 2005-0132981E5 F - Avantages imposables à des employés
Generally, if employees perform their duties within the municipality and the metropolitan area, where applicable, the CRA generally does not...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(10) | meaning of convention | 49 |
12 November 2004 External T.I. 2004-0080051E5 F - Allocation et remboursement de dépenses-employé
Employees are compensated between $1.00 and $2.00 per hour for the employment-related use of their own tools, equipment, and supplies (e.g., fax...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(x) | per-kilometre allowance tainted because a per-diem allowance also paid | 26 |
29 June 1995 Internal T.I. 9511147 - TAXABLE BENEFITS AND ALLOWANCES - CLEANING
Following the decision in The Queen v. Huffman, 90 DTC 6405 (FCA), it is the Department's position "that a reasonable allowance in respect of dry...
22 June 2004 External T.I. 2004-0060211E5 F - Allocation pour utilisation d'un véhicule à moteur
The employer, which sells the products of manufacturers, employs salaried sales representatives, who meet with various customers within their...
5 April 2004 External T.I. 2003-0050331E5 F - Allocations vestimentaires/Policiers
By virtue of a clause in their collective agreement, police officers who are required to work in civilian clothing on a temporary basis are...
5 April 2004 External T.I. 2003-0034061E5 F - Frais relatifs aux études payés par l'employeur
Mr. A's employer (the "Employer") granted him 10 months’ study leave to obtain a master's degree and agreed to pay an allowance (the...
4 March 2004 External T.I. 2003-0049831E5 F - Allocation pour l'achat d'ordinateur
Employees are required to acquire, at their own expense, a laptop or computer to be used in the course of their work (the "equipment"). This...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) | reimbursement of internet and modem charges not taxable where internet access is essential to performing employment duties | 233 |
29 October 2001 External T.I. 2001-0075565 F - FRAIS DE SEJOUR ET ALLOCATIONS POUR REPAS
Employees of a corporation engaged in selling and servicing work must answer service calls throughout the province of Quebec. In order to...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(6) - Paragraph 6(6)(a) | meaning of “temporary nature” and distance test | 162 |
22 October 2001 External T.I. 2001-0070715 F - ALLOCATIONS AUTOMOBILES
An employer was required to withhold pursuant to s. 153(1) on fixed automobile allowance paid monthly even though, at the end of the year, it...
26 July 1994 T.I. (C.T.O. "Employment Benefits - Special Clothing")
Although a non-accountable allowance for uniform dry cleaning and maintenance would not constitute a taxable benefit to the employee provided the...
9 February 1994 Internal T.I. 9335877 F - Clothing Allowance
"An employee would not be considered to be in receipt of a taxable benefit with respect to special or protective clothing (including safety...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(i) - Subparagraph 8(1)(i)(iii) | 115 |
13 December 1993 Income Tax Severed Letter 9326335 - Transfer Allowance
A relocation allowance equal to 1/12 or 1/24 of one year's salary of a member of the RCMP will be taxable as remuneration from employment in light...
11 March 1993, T.I. (Tax Window, No. 30, p. 13, ¶2465)
RC generally accepts that a non-accountable allowance for overtime supper money that is less than or equal to the value or cost of a normal meal,...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) | 70 |
5 January 1993 T.I. (Tax Window, No. 28, p. 15, ¶2402)
Amounts received by employees pursuant to a Quebec regulation requiring construction contractors to pay a set amount per day to employees to cover...
21 July 1992 Memorandum 921671 (March 1993 Access Letter, p. 64, ¶C5-184)
An allowance paid to employees paid by reference to their increased commuting distance resulting from an employer's relocation would be included...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) | 19 |
18 June 89 T.I. (Dec. 89 Access Letter, ¶1042)
Where the employers' practice was to provide a periodical lump sum payment for trips within a 16-kilometre radius from the employer's place of...
Forms
Subparagraph 6(1)(b)(iii)
Administrative Policy
30 September 2011 Internal T.I. 2011-0393171I7 F - Representation or other special allowances
A member of the Canadian armed forces was assigned to the U.S. and occupied an apartment there for several years and did not maintain a residence...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) | no benefit for excess of rent allowance over cost of comparable Cdn location or where higher class of accommodation is for security reasons | 259 |
28 June 2010 External T.I. 2010-0361561E5 F - Programme d'aide au développement international
After finding that the correspondent, who had received an allowance while stationed abroad in connection with a program that was funded as an...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 3400 | exclusion for international aid program | 114 |
18 March 2005 External T.I. 2004-0070911E5 F - Allocation ou salaire - traitement fiscal
In the context of a general discussion of monthly amounts received by residents from an organization which were submitted to be intended to cover...
23 January 1992 Memorandum (Tax Window, No. 12, p. 9, ¶1571)
Foreign service employees of Canada who receive allowances in respect of vacation trips are not taxable on those allowances pursuant to s....
Subparagraph 6(1)(b)(v)
Cases
Hudema v. The Queen, 94 DTC 6287 (FCTD)
A taxpayer, who was employed in the selling of television advertising in Regina and the surrounding viewer area, received a weekly car allowance...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(f) | 135 |
The Queen v. Eggert, 85 DTC 5522, [1985] 2 CTC 343 (FCTD)
Counsel for the taxpayer unsuccessfully argued that "period" can import the whole taxation year so long as any selling occurred at any time in the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(vii) | 32 | |
| Tax Topics - Statutory Interpretation - Punctuation | 20 |
Administrative Policy
S2-F3-C2 - Benefits and Allowances Received from Employment
Reasonable travel allowance
2.63 ...In general, expenses normally incurred while travelling from one place to another, including food,...
24 October 2008 External T.I. 2008-0278661E5 F - Allocation pour frais de déplacement
Representatives engaged in the sale of goods are required to perform the principal duties of their employment (and the corresponding travel)...
20 July 2006 External T.I. 2005-0124101E5 F - Avantages imposables à des employés
Can an employee of a national trade union centre that is the umbrella organization for various affiliated unions benefit from the s. 6(1)(b)(v)...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) | a working meal potentially could be excluded | 245 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Office | temporary position of unionized employee with union is an "office" | 27 |
17 November 2004 External T.I. 2004-0097131E5 F - Travail temporaire; négociation de contrats
Some members of the Executive Board of a trade union, who are elected every four years to various offices on the Board by vote of the trade union...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(6) - Paragraph 6(6)(a) - Subparagraph 6(6)(a)(i) | union executives standing for election every 4 years would not have duties of a temporary nature | 208 |
88 C.R. - F.Q.29
An employee who receives an allowance that is less than a reasonable amount and to which s. 6(1)(b)(v) otherwise applies would be required to...
Subparagraph 6(1)(b)(vii)
Cases
Canada (National Revenue) v. Al Saunders Contracting & Consulting Inc., 2020 FCA 89
Any amount excluded from a taxpayer’s income pursuant to ITA s. 6(1)(b)(vii) is also excluded from withholding obligations under s. 12 of the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Statutory Interpretation - Hansard, explanatory notes, etc. | Technical Notes add context to interpretation | 106 |
The Queen v. Eggert, 85 DTC 5522, [1985] 2 CTC 343 (FCTD)
Since the taxpayer received a fixed monthly travel allowance that did not vary in accordance with the number of days he spent on the road, the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(v) | 29 | |
| Tax Topics - Statutory Interpretation - Punctuation | 20 |
The Queen v. Paradis, 86 DTC 6029, [1985] 2 CTC 3 (FCTD)
A game warden received a set meal allowance from his employer of $2,500 which was calculated without regard to his travel time, and accordingly...
The Queen v. Cival, 83 DTC 5168, [1983] CTC 153 (FCA)
It was suggested obiter that mileage reimbursements would not be an "allowance".
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(h) - Subparagraph 8(1)(h)(ii) | 53 |
The Queen v. Lavers, 78 D.T.C 6230, [1978] CTC 341 (FCTD)
An employee who received a fixed allowance of $87 a month plus a mileage allowance of 9.8¢ per mile in respect of his car which he was required...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 172 - Subsection 172(1) | 39 |
See Also
Nicoll v. The King, 2023 TCC 116 (Informal Procedure)
The taxpayer was a boilermaker who regularly travelled from his home in Kelowna to jobs in various out-ot-town locations. The collective agreement...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(vii.1) | a “streamlined” system for handling travel allowances had the effect of making them taxable | 131 |
Hamilton v. The Queen, 2020 TCC 23 (Informal Procedure)
The taxpayer’s employer provided essential maintenance and turnaround services to large commercial facilities, such as pulp and paper plants,...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(6) - Paragraph 6(6)(b) - Subparagraph 6(6)(b)(i) | per-kilometer travel allowance calculated re distance between remote location and central point in employee’s city did not qualify | 161 |
Morissette v. The Queen, 2013 DTC 1002 [at 21], 2012 TCC 37 (Informal Procedure)
CRA issued a directive stating that meal allowances of over $17 per meal would be considered unreasonable, and on that basis the taxpayer's...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) | 99 |
Sénéchal v. The Queen, 2011 DTC 1357 [at 1997], 2011 TCC 365 (Informal Procedure)
The taxpayers were police union representatives. Lamarre J. affirmed the Minister's position that reimbursement from the union for meals were a...
Administrative Policy
30 June 2022 Internal T.I. 2022-0936671I7 F - Frais de déplacement
Given the great distance between the residence of new employees hired by the employer for a 24-month period and the employer's offices, they work...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) | one-time travel between a home office and the employer’s office was in the course of employment | 283 |
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(vii.1) | per-kilometer allowances for one-time travel between home office and employer’s office qualified under s. 6(1)(b)(vii.1 | 252 |
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(6) - Paragraph 6(6)(b) | potential exclusion of allowances for meals and hotels paid for travel to a remote work site (an office) of the employer where the employees stay for 3 days | 361 |
Canada Revenue Agency increases flat rate amount for meal claims, and reasonable amount for meal benefits and allowances 3 September 2020 CRA Press Release
Increase in presumptively reasonable overtime or travel meal allowance from $17 to $23
CRA … has increased the amount that employers can use to...
8 November 2019 External T.I. 2019-0820401E5 - Temporary Residence Allowance
Temporary residence allowances are paid to members of a legislative assembly where their permanent residence is more than a specified distance...
15 November 2016 Internal T.I. 2015-0577201I7 F - Employés du transport
A trucking company pays its employed long-haul drivers allowances for accommodation expenses of $0.04 per kilometer (scenarios 1 and 3) or of $75...
9 May 2011 External T.I. 2010-0384711E5 F - Avantages imposables
A fixed per-day allowance paid to a foreman for the use of an all-terrain vehicle ("ATV") owned by the foreman in supervising forestry workers was...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) | allowance for gasoline expenses of forestry tree trimmers were taxable – limited exception for non-receipted reimbursement of safety equipment | 149 |
8 February 2010 Internal T.I. 2009-0352721I7 F - Allocations pour frais de repas
Where employees work outside their regular headquarters location and do not have access to their normal eating area, the employer provides a meal...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) | no taxable benefit from $17 meal allowance paid where 2 or more hours of occasional contiguous overtime | 190 |
18 January 2008 External T.I. 2007-0235131E5 F - Faux frais de déplacement
Would a travel policy that provides an allowance for incidental expenses - comparable to the rates provided by the Treasury Board of Canada...
31 May 2006 External T.I. 2006-0185481E5 F - Remboursement de dépenses et allocations
It is proposed that employees travelling on the employer’s business away from the employer’s municipality receive, in addition to expense...
IT-272R "Automobile and Other Travelling Expenses - Employees"
Where RC considers a travelling allowance claimed to be reasonably high and the employee is unable to provide acceptable evidence to show that the...
Subparagraph 6(1)(b)(vii.1)
Cases
Daniels v. Canada (Attorney General), 2004 DTC 6276, 2004 FCA 125
The Court rejected the taxpayer's submission that as a councillor with the County of Newell in Alberta, his place of business was the whole of the...
See Also
Nicoll v. The King, 2023 TCC 116 (Informal Procedure)
The collective agreement between a boilermakers union and a group of employers was amended to provide a “streamlined” system that eliminated...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(vii) | system of uniform travel allowances was not reasonable | 312 |
Sénéchal v. The Queen, 2011 DTC 1357 [at 1997], 2011 TCC 365 (Informal Procedure)
The taxpayers were police union representatives. Lamarre J. affirmed the Minister's position that taxpayers' reimbursement from the union for...
Veinot v. The Queen, 2010 DTC 1097 [at 3017], 2010 TCC 112 (Informal Procedure)
The taxpayer, who was employed as a forestry equipment operator, was required to travel to various remote logging sites with a forestry vehicle. ...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(h.1) | 202 |
Campbell v. The Queen, 2003 DTC 420, 2003 TCC 160 (TCC) (Informal Procedure)
Travel allowances (calculated on a per-kilometre basis) received by the taxpayers in respect of their mandatory attendance at School Board...
Administrative Policy
30 June 2022 Internal T.I. 2022-0936671I7 F - Frais de déplacement
Given the great distance between the residence of new employees hired by the employer for a 24-month period and the employer's offices, they work...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) | one-time travel between a home office and the employer’s office was in the course of employment | 283 |
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(vii) | one-time travel between home office and employer’s office did not qualify as travel away from the employer’s establishment | 247 |
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(6) - Paragraph 6(6)(b) | potential exclusion of allowances for meals and hotels paid for travel to a remote work site (an office) of the employer where the employees stay for 3 days | 361 |
5 March 2021 External T.I. 2017-0713041E5 F - Allocation pour usage d’un véhicule à moteur
An employer pays a fixed per-kilometre allowance to its employees for their motor vehicle use in the course of employment – except that if the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(x) | it can be acceptable to cap the kilometres for which a car allowance is paid | 222 |
17 August 2020 External T.I. 2016-0643631E5 F - Frais de déplacement
An employee works alternating weeks at an employer establishment located in the city where the employee resides and at a second establishment...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(h.1) | commuting expenses to a 2nd more distant regular employer establishment were personal | 110 |
2 February 2017 Quebec CPA Individual Taxation Roundtable Q. 1.5, 2016-0674801C6 F - Allocation et frais d'une automobile
Can an employer pay an allowance to an employee using the most favorable of the following three methods: the travel allowance set by the Treasury...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(k) - A - Subparagraph A(v) | electric vehicles treated the same | 67 |
19 December 2012 External T.I. 2012-0463581E5 F - Allocation pour l'usage d'un véhicule
In the performance of her duties of employment as a home care attendant, the employee always drove her own car directly from her home to that of...
25 January 2010 Internal T.I. 2009-0345501I7 F - Allocations pour frais de déplacement
Allowances provided by an employer to employees who accept temporary assignments away from their regular post, to cover commuting expenses between...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(6) - Paragraph 6(6)(b) - Subparagraph 6(6)(b)(i) | potential application to track maintenance employees | 126 |
26 January 2009 Internal T.I. 2008-0303901I7 F - Allocation raisonnable et coûts d'opération
A Quebec government employee, who in the course of her employment must travel to visit patients, receives an allowance of $0.43 per kilometre in...
29 August 2008 External T.I. 2007-0257661E5 F - Allocation pour frais de déplacement
An employee and shareholder of the Corporation, whose place of business is the individual’s residence, receives an allowance of $0.50 per...
13 June 2008 External T.I. 2008-0270721E5 F - Allocations pour l'usage d'un véhicule à moteur
In accordance with their collective agreement, employees are paid an allowance as compensation for the use of their personal vehicle when the...
3 October 2006 External T.I. 2006-0203911E5 F - Allocations pour l'usage d'un véhicule à moteur
While on call (for periods of five days during a larger cycle) an employee must use a personal vehicle to attend the calls. Is the allowance of...
16 December 2002 External T.I. 2002-0138195 F - ALLOCATION POUR FRAIS DE DEPLACEMENT
An employee of a financial institution works three days a week at the office of his employer, a financial institution, located in the municipality...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 81 - Subsection 81(3.1) | amalgamation of 2 part-time employers ended the s. 81(3.1) exclusion so that travel allowance was for personal travel | 108 |
4 March 2002 External T.I. 2001-0106325 F - ALLOCATION POUR UNE AUTOCARAVANE
An employee who sometimes uses his motorhome to travel in the performance of his duties of employment is paid a per-kilometre allowance for the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(r) | motor home is not an automobile and thus not within s. 18(1)(r) | 134 |
30 August 2001 External T.I. 2000-0058425 F - FRAIS DE DEPLACEMENT
Allowances received by municipal judges for transportation costs and living expenses to preside over sessions of the municipal court were not...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 5 - Subsection 5(1) | allowances for time spent travelling would be taxable | 53 |
3 December 1993 Income Tax Severed Letter 9324577 - Automobile Allowance—Less than Reasonable Amount?
RC will consider an automobile allowance to be less than a reasonable amount (with the result that the employee is entitled to include the...
90 C.R. - Q3
An employee's automobile allowance is not reasonable where the employee's total expenses for business use in a year exceed the total allowance...
88 C.R. - "Automobile Rules" - Allowances to Employees"
An employee may not include in his income an allowance that is excluded by s. 6(1)(b), and then claim a deduction for his actual expenses.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(x) | 92 |
Subparagraph 6(1)(b)(x)
Administrative Policy
29 November 2023 External T.I. 2019-0812661E5 F - Allocation pour usage d’un véhicule à moteur
In order to encourage carpooling and have a positive effect on the environment, a company pays a car travel allowance as follows:
- Per kilometre...
5 March 2021 External T.I. 2017-0713041E5 F - Allocation pour usage d’un véhicule à moteur
An employer has a policy of paying an employee an allowance for the use of a motor vehicle of a fixed amount per kilometre driven for the use of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(vii.1) | unreasonably low allowance may be taxable | 304 |
24 June 2016 Internal T.I. 2014-0555611I7 F - Allocation raisonnable
Did 2012-0460481E5 (which found that a fixed allowance of $4.60 for each trip made of less than 10 kilometres in the same day in running errands...
17 June 2013 External T.I. 2012-0465031E5 F - Paiements pour publicité sur un véhicule
A corporate employer, in addition to paying its employees an allowance for their use of their automobiles that is based solely on the number of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) | taxable benefit from being paid to display company logo on car | 84 |
28 March 2013 External T.I. 2012-0460481E5 F - Allocation pour usage d'un véhicule à moteur
An employee could receive a fixed allowance of $4.60 for each trip made of less than 10 kilometres in the same day in running errands for the...
22 June 2011 External T.I. 2010-0387391E5 F - Allocations pour véhicule à moteur
Employees of a construction company work, for between a day and a few weeks, at various worksites in the province that are not their employer's...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(h.1) | employees entitled to s. 8(1)(h.1) deduction where they received an allowance that was taxable under s. 6(1)(b)(x) | 161 |
20 July 2009 External T.I. 2009-0312541E5 F - Allocation pour usage d'un véhicule à moteur
The employer, whose nurses used their motor vehicles in the course of their employment, paid its employees an allowance of 0.40$/km, while for any...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(h.1) | T2200 can be prepared where car allowance bifurcated into 2 allowances, one of which is taxable | 266 |
7 May 2007 Internal T.I. 2007-0228521I7 F - Allocation pour frais de déplacement
The compensation policy of the employer (the Quebec government) provided for a daily minimum payment where the number of kilometres traveled per...
4 December 2006 External T.I. 2006-0185301E5 F - Allocation automobile
Employees receive per-kilometre allowances for the actual kilometres driven by the employee in the employee’s automobile during the year,...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(xi) | meaning of mixed allowance | 139 |
12 November 2004 External T.I. 2004-0080051E5 F - Allocation et remboursement de dépenses-employé
A per-kilometre allowance was not excluded under s. 6(1)(b)(x) because the employees also received a per-diem allowance of $25 or $35 for their...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) | per-hour reimbursement of employees’ use of equipment is taxable allowance/ reimbursed employment-related internet use is not taxable | 300 |
2 May 1990 T.I. (October 1990 Access Letter, ¶1448)
Where an employee receives a fixed car allowance of $10 a month and an allowance of 21¢ per kilometre, the per-kilometre allowance will not have...
88 C.R. - "Automobile Rules" - Allowances to Employees"
Flat monthly payments or advances that are based on an estimate of business kilometres to be driven with an agreement for a year-end adjustment...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(vii.1) | 25 |
Subparagraph 6(1)(b)(xi)
Administrative Policy
4 December 2006 External T.I. 2006-0185301E5 F - Allocation automobile
Employees receive per-kilometre allowances for the actual kilometres driven by the employee in the employee’s automobile during the year,...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(x) | allowance cannot be bifurcated so as to result in a component reasonable allowance | 167 |
8 February 1994 Internal T.I. 9400657 - EMPLOYMENT EXPENSES
"A reimbursement is usually considered as a repayment of an expense actually incurred and an allowance implies an amount paid in respect of some...
October 1989 Revenue Canada Round Table - Q1 (Jan. 90 Access Letter, ¶1075)
Where the employer paid a yearly lump sum for trips within a 20-kilometre radius of the employer's place of business, and a reasonable allowance...
88 C.R. - F.Q.26
Where the employer provides an automobile allowance to an employee but is also billed directly for a portion of the automobile expense the...
Paragraph 6(1)(c) - Director’s or other fees
Administrative Policy
17 December 2012 External T.I. 2012-0458071E5 - Per Diem Fees
Per diem judges and per diem justices of the peace, who are former full-time judges and former full-time or part-time justices of the peace, are...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Office | 96 |
15 February 1994 External T.I. 9336865 F - Waived Conference Fees
Where a non-profit corporation holds an annual conference each year in a selected Canadian city and asks each of its directors to attend the...
Paragraph 6(1)(d)
Administrative Policy
27 August 2003 Internal T.I. 2003-0019857 F - Attribution de dividendes par un RPEB
An employee profit sharing plan (EPSP) received dividends from taxable Canadian corporations that were included in computing its income and that...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 115 - Subsection 115(1) - Paragraph 115(1)(a) - Subparagraph 115(1)(a)(i) | dividends allocated to a non-resident beneficiary by an EPSP in respect of duties performed in Canada were taxable under ss. 6(1)(d) and 115(1)(a)(i) | 73 |
Paragraph 6(1)(e) - Standby charge for automobile
Cases
Babich v. Canada, 2013 DTC 5010 [at 5556], 2012 FCA 276, aff'g 2010 TCC 352
The taxpayer ("Babich") was the sole shareholder of a corporation ("Able") which provided a car exclusively for use (both personal and business)...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 15 - Subsection 15(1) | shareholder rather than employee benefit | 194 |
Adams v. R., (sub nom. R. v. Adams) 98 D.T.C. 6266, [1998] 2 C.T.C. 353
The taxpayers were car salesmen who leased automobiles from the dealership, were required to ensure that the vehicles were on the premises of the...
Bouchard v. The Queen, 83 DTC 5193, [1983] CTC 173 (FCTD)
A company's Rolls Royce which it made available to its President and chief shareholder ("Bouchard") was found to have been used 90% of the time by...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Effective Date | parol trust over land has effect for tax purposes from its formation - at least, if subsequently confirmed in writing | 160 |
| Tax Topics - General Concepts - Evidence | 74 | |
| Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(2) | 78 | |
| Tax Topics - Income Tax Act - Section 69 - Subsection 69(1) - Paragraph 69(1)(b) | 83 |
The Queen v. Harman, 80 DTC 6052, [1980] CTC 83 (FCA)
It was held under the pre-1983 version of S.6(1)(e) that an employee's "employer made an automobile available to him in the year for his personal...
See Also
Potvin v. The Queen, 2008 DTC 4813, 2008 TCC 319 (Informal Procedure)
The provision of a truck to the taxpayer's husband by a corporation of which she was the sole shareholder and he the principal employee was found...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 15 - Subsection 15(1) | negligible work - therefore shareholder benefit | 86 |
MacMillan v. The Queen, 2005 DTC 1243, 2005 TCC 583 (Informal Procedure)
The taxpayer (a vehicle fleet maintenance manager) was required by his employer (B.C. Hydro) to keep a dedicated Hydro van at home during hours...
Administrative Policy
23 February 2012 External T.I. 2011-0423461E5 F - Automobiles de collection
A corporation ("Autoco") with an individual as its sole shareholder, director and officer owns collector automobiles for its investment purposes. ...
7 October 2016 APFF Roundtable Q. 5, 2016-0652861C6 F - Véhicules électriques - rabais
Respecting where an electric vehicle used for business purposes or in the course of employment is charged at home and there is no electricity...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A | installation cost included | 37 |
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(2) | Quebec government assistance does not reduce cost of purchased vehicle, but treated as compensation to dealer-lessor prorated over term of lease | 259 |
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(7) - Paragraph 13(7)(g) | vehicle assistance paid indirectly (to dealer) covered | 237 |
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A | cost not reduced under general principles by government assistance | 139 |
7 September 2012 Internal T.I. 2012-0434341I7 - Taxable benefit chauffeur of employer-provided car
In discussing whether there is a taxable benefit to the driver of an executive's employer-provided automobile, CRA noted that it was its...
9 December 2010 Internal T.I. 2010-0371741I7 F - Automobiles mises à la disposition des employés
In finding that occasional use of an employer-provided automobile for meetings at locations away from the employee’s usual place of work did not...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Automobile | qualification as automobiles turns on design, not use | 164 |
6 August 2010 External T.I. 2010-0364091E5 F - Utilisation d'un véhicule fourni par l'employeur
Employees are required, during the period during which they are on call, to use at all times an employer-provided automobile that has the...
21 September 2006 External T.I. 2005-0147821E5 F - Utilisation d'un véhicule
A City provides the foremen of the Public Works Department with vans for travel during working hours but with the vehicles left at their disposal...
November 1991 Memorandum (Tax Window, No. 12, p. 7, ¶1568)
Where pick-up trucks are supplied by forest industry employers to employees for use in their work as well as for travel between home and work, the...
2 November 89 Policy and Systems Branch Letter (May 1990 Access Letter, ¶1204)
The rules normally applicable to employer-provided vehicles also will apply to police and fire department cars.
89 C.R. - Q.48
An automobile will be considered to be available to the employee where: the employee is absent from the country on business and leaves the...
IT-63R5 "Benefits, Including Stand-By Charge for an Automobile, from the Personal Use of a Motor Vehicle Supplied by an Employer - after 1992"
Articles
M. Tang, G. Katz, "Automobile Taxable Benefits and Expenses: Part 1", 1997 Canadian Tax Journal, Vol. 45, No. 5, p. 1150.
Summerville, "Stand-by Charge May Be Reduced by Leaving Company Car in Employer's Control", Taxation of Executive Compensation and Retirement, September 1990, p. 326.
Paragraph 6(1)(e.1) - Group sickness or accident insurance plans
Administrative Policy
12 June 2017 Internal T.I. 2016-0679291I7 F - Régime d’assurance décès et mutilation accidentels
The Employer requires accidental death and dismemberment coverage ("Insurance Coverage") for those of its employees traveling to high-risk areas...
29 April 2013 External T.I. 2013-0476131E5 F - Régime d'assurance-collective
In the context of a general discussion of the taxation of amounts related to a group insurance plan, CRA stated:
[U]nder subparagraph 6(1)(a)(i),...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(4) | general description of the s.6(4) exception to s. 6(1)(a)(i) | 160 |
IT-63R5 "Benefits, Including Stand-By Charge for an Automobile, from the Personal Use of a Motor Vehicle Supplied by an Employer - after 1992"
Paragraph 6(1)(f) - Employment insurance benefits
Commentary
S. 6(1)(f) provides for the inclusion in an employee's income of periodic amounts received under a sickness or accident insurance plan, disability...
Cases
Tsiaprailis v. Canada, 2005 DTC 5119, 2005 SCC 8, [2005] 1 S.C.R. 113
The taxpayer received a lump sum payment of $105,000 in settlement of her claim for wrongful termination of her long-term disability benefits....
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 68 | general authority to allocate global amounts without reference to s. 68 | 54 |
Leonard v. The Queen, 96 DTC 6518, [1996] 3 CTC 265 (FCTD)
The collective agreement between the taxpayer's union and his employer called upon the employer to pay premiums to an insurance company for weekly...
Dagenais v. The Queen, 95 DTC 5318, [1995] 2 CTC 100 (FCTD)
The taxpayer, who was a member of a trade union that had negotiated short-term weekly indemnity benefits and long-term disability benefits with...
See Also
Eyckelhoff v. The Queen, 2020 TCC 130 (Informal Procedure)
The taxpayer, a Canadian resident, received periodic payments from a Netherlands insurance company (“Aegon”) which she submitted were exempt...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(a) - Subparagraph 56(1)(a)(i) | foreign policy generated taxable pension given failure to establish that it was a taxpayer-funded disability policy | 242 |
Watts v. The Queen, 2004 DTC 3111, 2004 TCC 535 (Informal Procedure)
Periodic disability payments received by the taxpayer under the Canada Pension Plan were not received in respect of a "disability insurance plan"...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 118.94 | 39 | |
| Tax Topics - Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(a) | 77 |
Harnish v. The Queen, 2007 DTC 1317, 2007 TCC 546 (Informal Procedure)
Periodic payments received by the taxpayer under a long-term disability plan were income to him withstanding that he signed a subrogation...
Fry v. The Queen, 2001 DTC 846 (TCC)
A lump-sum received by the taxpayer in settling a claim against her employer's group disability insurer in respect of a motor vehicle accident was...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Statutory Interpretation - Specific v. General Provisions | 52 |
Cook v. The Queen, 95 DTC 853, [1995] 1 CTC 2251 (TCC)
A lump sum received by the taxpayer in settlement of an action that she had brought against Great-West Life Insurance Company for its denial of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) | 97 |
Administrative Policy
2019 Ruling 2018-0757561R3 - Payment in lieu of continued WLRP payments
Background
Parentco (a taxable Canadian corporation) filed for and obtained protection under the CCAA (or Bankruptcy and Insolvency Act) by order...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(3) - Paragraph 6(3)(b) | residual payments out of a disability trust were employment income | 133 |
S2-F1-C1 - Health and Welfare Trusts
Employee contributions
1.38 Amounts included in income under paragraph 6(1)(f) may be reduced by the total amount of any contributions made by the...
Employee contributions
1.38
Amounts included in income under paragraph 6(1)(f) may be reduced by the total amount of any contributions made by the employee to the...
8 July 2013 Internal T.I. 2012-0470021I7 - Settlement of Future Benefits ASO Plan
CRA noted that an employer's group disability plan which was administered by an administrator (such as an insurance corporation) on an...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 39 - Subsection 39(1) - Paragraph 39(1)(a) - Subparagraph 39(1)(a)(ii) | 244 |
12 February 2013 Internal T.I. 2013-0475631I7 - Treatment of Settlement Amounts
It is contemplated that a lump sum would be paid to the individual plaintiffs in a class action suit in settlement of their allegation that...
23 March 2009 External T.I. 2008-0293131E5 F - Prestations reçues par une succession
An individual who had been receiving long-term disability benefits after an illness had prevented continuation of the individual’s employment,...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 70 - Subsection 70(2) | amounts received by estate in settlement of deceased’s action for unpaid disability were rights and things | 199 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Death Benefit | survivor benefit in settlement of rights under a wage loss replacement plan could be a death benefit | 143 |
3 November 2008 External T.I. 2008-0289701E5 F - Paiement fait à la succession d'un employé
Following an employee's death, the employer was incorrectly of the opinion that the estate could not make a claim against the insurer under an...
24 August 2007 External T.I. 2006-0215691E5 F - Ristourne d'un régime d'assurance collective
A government Ministry is the policyholder for the group insurance plan for the staff at Quebec daycare centres who pay the premiums, If the...
27 March 2007 External T.I. 2006-0217511E5 F - Régime d'assurance collective
After indicating that payment by employer of all rather than half the premiums for a group insurance plan would not oust the exclusion in s....
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) - Subparagraph 6(1)(a)(i) | payment by employer of all rather than half the premiums for a group insurance plan would not oust the exclusion | 137 |
22 November 2006 External T.I. 2006-0189441E5 - Change to employer paid disability plan
Where an employee-pay-all disability plan becomes a plan in which the employer makes 100% of the contributions, an employee in receipt of benefits...
9 May 2006 Internal T.I. 2006-0175551I7 F - Traitement fiscal d'un montant forfaitaire
A member of the Canadian armed forces who had been injured and in receipt of disability benefits from the Department of Veterans Affairs and the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 39 - Subsection 39(1) - Paragraph 39(1)(a) - Subparagraph 39(1)(a)(iii) | lump sum received in settlement of entitlement to future disability benefits was non-taxable s. 39(1)(a)(iii) receipt | 62 |
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(15) | forgiveness of rehabilitation loan was taxable | 85 |
30 January 2006 External T.I. 2005-0159331E5 - Long term disability lump sum payments
In response to a query as to CRA’s position regarding the taxability of lump sum payments of long-term disability benefits that do not represent...
9 June 2005 External T.I. 2004-0097451E5 F - Régimes d'assurances collectives
The employer undertakes to pay the full premium for a so-called taxable short-term and long-term disability insurance, providing a certain level...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) - Subparagraph 6(1)(a)(i) | employees can potentially pay top-up amounts for further benefits or receive taxable compensation for opting for lower benefits | 175 |
29 November 2004 External T.I. 2004-0080891E5 F - Régime d'assurance invalidité
Under a group disability insurance plan, the cost of contributions was allocated as:
- Life, accidental death and dismemberment insurance:...
8 October 2004 APFF Roundtable Q. 11, 2004-0090791C6 F - Maladies graves et soins de longue durée
Regarding the availability of the s. 6(1)(f) exclusion regarding payments received pursuant to individual long-term care policies (without a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose | premiums for critical illness policies and individual long-term care policies for senior employees are deductible | 106 |
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) - Subparagraph 6(1)(a)(i) | sickness plan can comprise individual critical illness policies | 128 |
29 October 2003 External T.I. 2003-0006505 F - REGIME D'ASSURANCE SALAIRE
Various wage-loss replacement plan were modified. CCRA noted that where there was not a new plan, then it would be possible for individuals who...
16 August 2002 Internal T.I. 2002-0156577 F - ASSURANCE - INVALIDITE - PARITE
In finding that a taxpayer could deduct contributions made to a disability insurance plan between 1990 and 2001 from an equalization adjustment...
31 July 2002 External T.I. 2002-0145335 - WAGE LOSS REPLACEMENT PLAN - TAX STATUS
For a disability insurance plan to be an employee-pay-all plan, the employees must be legally responsible for paying all the premiums,...
11 July 2002 External T.I. 2002-0131085 F - ASSURANCE INVALIDITE
In the course of a general discussion as to whether a disability insurance plan was an employee-pay-all plan, so that any benefits received by the...
25 July 2002 Internal T.I. 2002-0139877 F - ASSURANCE INVALIDITE-PARITE
In finding that a taxpayer could deduct contributions made to a disability insurance plan between 1989 and 2001 from a parity adjustment received...
20 March 2002 External T.I. 2001-0113815 F - TVQ SUR PRIMES D'ASSURANCE - SALAIRE
Would the benefits under a wage-loss insurance plan whose premiums are paid in full by the employees remain non-taxable where the employer pays...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) | employee would not be credited with a contribution on paying Quebec sales tax on wage loss plan premiums/ the employer paying them would not be a contribution | 59 |
3 November 2000 External T.I. 2000-0050685 - LTDP IS AN EMPLOYEE-PAY-ALL PLAN
The existence of an employee-paid-all plan is not determined by looking at the manner in which payments are made or reported, but rather is...
5 July 1995 External T.I. 9507035 - DISABILITY PLANS WITH EMPLOYEE PAY OPTION
An employee pay-all plan can be considered to exist separate from a plan to which the employer contributes even if the plans are co-ordinated to...
22 June 1994 External T.I. 9409815 - WAGE LOSS REPLACEMENT PLANS
Where the employer makes all contributions to one long term disability plan and it is intended that the employees will make all the contributions...
9 June 1994 Internal T.I. 9405947 - SETTLEMENT OF DAMAGES
Amounts received in settlement of an action relating to an entitlement to long-term disability benefits were viewed as being a settlement of the...
15 February 1994 External T.I. 9329835 F - Conversion of an LTD Plan
Where an individual with a degenerative disorder begins to receive L.T.D. benefits subsequent to the conversion of an employee-pay-all Ltd plan to...
16 December 1993 Income Tax Severed Letter 9320395 - Employee Pay-All Accident Insurance Plans
"The issue of whether or not an employee-pay-all plan exists is not determined by considering who paid the related premiums. Rather, the question...
2 November 1992 T.I. 922363 (September 1993 Access Letter, p. 404, ¶C5-212)
Discussion of treatment of payments from the plan after the employer rather than the employees becomes required to make all contributions to the...
1 June 1993 External T.I. 93061850 - Prestations d'assurance-salaire
CRA disagreed with the representation that all the premiums under a wage loss insurance plan required under the collective agreement were borne by...
20 August 1992 Memorandum 922092 (April 1993 Access Letter, p. 130, ¶C5-190; Tax Window, No. 23, p. 21, ¶2159)
Benefits which arise subsequent to the conversion of a taxable plan to a non-taxable plan are included in income unless those benefits are in no...
18 February 1992, T.I. 913508 (March 1993 Access Letter, p. 65, ¶C5-185)
Discussion of a disability plan which includes a provision whereby the normal employee contributions to a registered pension plan will be funded...
14 February 1992 T.I. 193385 (January - February 1993 Access Letter, p. 7, ¶C5-182)
Discussion of various issues arising where an employer provides both taxable and non-taxable disability benefits to employees.
28 January 1992 Memorandum (Tax Window, No. 16, p. 17, ¶1723)
Where an individual receives a lump-sum payment pursuant to a consent to judgment of the Supreme Court of Ontario and as a result of a claim for...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 81 - Subsection 81(1) - Paragraph 81(1)(g.1) | 66 |
11 July 1991 Memorandum (Tax Window, No. 6, p. 11, ¶1349)
Re employee-pay-all plans.
8 May 1991 T.I. (Tax Window, No. 3, p. 28, ¶1246)
Where an employee is obliged to pay deficiencies under a wage loss replacement plan funded by employee premiums and is entitled to plan surpluses,...
9 Aug. 89 T.I. (Jan. 90 Access Letter, ¶1076)
If the employer pays administration expenses, claim handling charges, legal expenses, actuarial fees or any other charges required in the...
Subparagraph 6(1)(f)(iii)
Administrative Policy
25 January 2007 External T.I. 2006-0213961E5 F - Rémunération, assurance salaire, indemnité CSST
In Year 1, pending the employee’s application for worker’s compensation from the CSST for a disability (which ceased later in the year), the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(v) | amount paid by employer in advance of workers’ compensation was reportable as s. 6(1)(f)(iii) income, with the employee later taking a s. 8(1)(n) deduction and a s. 56(1)(v) inclusion | 186 |
Subparagraph 6(1)(f)(v)
Administrative Policy
19 July 2011 External T.I. 2010-0386411E5 F - Régime collectif d'assurance-salaire
Ms. X worked for ABC Inc. from 2000 to 2005, with her and her employer each annually contributing $1,500 to a group salary insurance plan (a...
16 December 2010 Internal T.I. 2010-0380461I7 F - Cotisations versées à régime d'assurance-salaire
Can an employee deduct, from benefits received from a wage-loss replacement plan, contributions the employee made to that plan in previous years...
Paragraph 6(1)(g) - Employee benefit plan benefits
Cases
Black v. The King, 2024 TCC 96
A year before a sale of 61% of a private Canadian video gaming company for Cdn.$73 million, an estate freeze was implemented by its dominant...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 7 - Subsection 7(2) | s. 7(2) did not apply to a trust holding employer shares for employees where none of the shares were specifically allocated to specific employees | 347 |
Administrative Policy
5 October 2020 External T.I. 2020-0852671E5 - Provident fund - Isle of Man
It was unclear whether benefits received by the taxpayer (now a Canadian resident) from a “provident fund” (the “PF”), that had been...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(a) - Subparagraph 56(1)(a)(i) | pension fund payments are carved out of EPB benefits where s. 6(1)(g)(iii) applies | 332 |
3 July 2019 External T.I. 2018-0781941E5 - Foreign retirement plans (Ireland)
An Irish resident transferred the funds from a conventional Irish company pension plan to an Irish Personal Retirement Savings Account (PRSA) and,...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Superannuation or Pension Benefit | employer contributions to a predecessor fund are insufficient to give rise to superannuation or pension benefits | 196 |
24 May 2002 Internal T.I. 2002-0130667 F - REGIME PRESTATION EMPLOYES
After providing a review of the transitional rules for potential grandfathering of a plan which was an employee benefit plan before February 26,...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Salary Deferral Arrangement | discussion of transitional rules re expansion of SDA rules effective February 26, 1986 | 42 |
| Tax Topics - General Concepts - Payment & Receipt | amounts “received” under EBP if unrestricted right to receive | 133 |
88 C.R. Q.4
Interest income earned in a "money purchase" pension plan which was funded by an employer in respect of services rendered by an employee while a...
Paragraph 6(1)(i)
Administrative Policy
2015 Ruling 2015-0601441R3 - XXXXXXXXXX Partnership - winding up
Current structure
Sub1 and Sub2 (both taxable Canadian corporations and wholly-owned subsidiaries of Parent) are currently the sole partners of a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 98 - Subsection 98(5) | 98(5) wind-up through s. 85 transfer of partnership interest of one partner to the other and preceded by debt assumptions | 292 |
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(ii) | interest deductible following assumption of interest-bearing internal debt on s. 98(5) wind-up | 297 |
| Tax Topics - Income Tax Act - Section 34.2 - Subsection 34.2(11) | continuation of s. 34.2(11) reserve following partnership wind-up | 339 |
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(m) | continued availability of s. 20(1)(m) reserve following s. 98(5) wind-up | 296 |
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(n) | flow-through of s. 20(1)(n) reserve on s. 98(5) wind-up | 289 |
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(24) | s. 20(24) election on s. 98(5) wind-up | 307 |
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(9) | s. 18(9) deduction claimable by transferee former partner following s. 98(5) wind-up | 241 |
| Tax Topics - Income Tax Act - Section 147.2 - Subsection 147.2(8) | s. 147.2 continuity following s. 98(5) wind-up | 368 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Salary Deferral Arrangement - Paragraph (k) | no income on RSU/DSU assumption | 22 |
5 March 2004 External T.I. 2004-0060831E5 F - Congé à traitement différé
In the course of a general discussion, CRA stated:
[I]f the employee decides during the course of the plan that he will retire at the end of the...
Paragraph 6(1)(j)
Administrative Policy
11 March 2009 External T.I. 2009-0306601E5 F - Remboursement de cotisations syndicales
A union wishes to return to its members the amounts it has accumulated and over-collected from them. After noting the potential for inclusion...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 3 - Paragraph 3(a) | Fries applied re exempt distributions from a union | 39 |
5 March 2009 External T.I. 2008-0279241E5 F - Prestation consécutive au décès
Before addressing the treatment of a lump sum paid by a union to an active member on the member’s death, CRA discussed the treatment of amounts...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Death Benefit | benefit paid on union member’s death could not be a death benefit (no employer-employee relationship | 30 |
| Tax Topics - Income Tax Act - Section 70 - Subsection 70(2) | lump sum paid to a union member on death could be in satisfaction of a right or thing | 193 |
10 December 2004 External T.I. 2004-0080141E5 F - Remboursement de cotisations syndicales
A refund of union dues by a union was distributed from its administration fund in 2004 to current members and those who were members on December...
10 December 2004 Internal T.I. 2004-0082341I7 F - Dissolution d'un syndicat
A union ceased operations and distributed all its net funds to its members in amounts based on their respective seniority. In indicating that a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 54 - Capital Property | liquidating distribution to union members gave rise to capital gain | 52 |
Paragraph 6(1)(k) - Automobile operating expense benefit
See Also
Szymczyk v. The Queen, 2014 TCC 380 (Informal Procedure)
The taxpayer's employer, General Motors of Canada Limited, assigned a new vehicle to the taxpayer and about 350 other senior managers or...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Estoppel | Minister's authorization should not be set aside too readily as being contrary to law | 329 |
| Tax Topics - General Concepts - Onus | Minister's "partly arbitrary" assumptions did not remove onus from taxpayer | 333 |
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(2) | separate personal use kilometers required for each vehicle used in year | 183 |
Administrative Policy
23 May 2023 External T.I. 2017-0713011E5 F - Avantages imposables relatifs aux automobiles ou autres véhicules
Employees were provided with a minivan (specially adapted to carry specialized equipment) only during periods that they were on-call to respond to...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Automobile - Paragraph (e) - Subparagraph (e)(i) | a minivan with a permanent reduction to a below-four seat capacity could be excluded from being an “automobile” | 199 |
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(2) - Element A - Paragraph A(a) | driving to or from home as a result of responding to emergency calls is not personal use | 193 |
10 June 2021 External T.I. 2017-0696041E5 - Automobile Taxable Benefits
Employees who are provided with electric vehicles for use in performing their employment duties are required to recharge the vehicle battery at...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(2) - Element E | employer covering collision damage to leased car not included in standby charge calculation | 162 |
| Tax Topics - Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(h.1) | reasonable per-kilometre charge can be used to determine electric-vehicle cost of travelling | 205 |
17 July 2019 External T.I. 2018-0777951E5 F - Avantage automobile
CRA indicated that where an individual had two employers, which were related corporations, and one of the two corporations acquired a car that it...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(2) | where 2 related employers, only a single benefit under the formula is calculated for each automobile | 115 |
| Tax Topics - Income Tax Regulations - Regulation 200 - Subsection 200(3) | where 2 related employer, ss. 6(1)(e) or (k) benefit can be reported by either employer | 174 |
14 September 2017 Roundtable, 2017-0703881C6 - CPA Alberta 2017 Q17: Electric Vehicle Taxable Benefits
A free charging station is provided at an employee’s home for a car used in performing employment duties. As the charging station draws on the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) | benefit from employer-provided charging station | 205 |
| Tax Topics - Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(h.1) | requirements for employee deduction of electricity costs for home vehicle charging station | 185 |
17 December 2013 Internal T.I. 2013-0510111I7 F - Automobile mise à la disposition d'un employé
A government employee reports to an office 1.5 days a week that serves as a place for preparing reports, meetings with the supervisor and...
5 October 2012 Roundtable, 2012-0454151C6 F - Registre des déplacements
Is an employer required to obtain an employee's travel logbook when providing the employee with a vehicle; and if such a record is not provided,...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 230 - Subsection 230(1) | no stipulated documentary requirement for kilometer log | 131 |
7 January 2002 External T.I. 2001-0089585 F - AUTOMOBILE DETENUE EN COPROPRIETE
A shareholder-employee who uses his $30,000 automobile 75% for business, and 25% for personal purposes sells a 75% interests in the automobile to...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(2) | standby based on corporation’s cost where it purchases a co-ownership interest in the automobile | 106 |
26 June 1995 Internal T.I. 9500886 - AUTOMOBILE OPERATING EXPENSE BENEFIT
Any amounts paid by an employee to a third party not related to the employer for the operating expenses of an employer-provided automobile will...
14 March 1995 External T.I. 9428915 - WHETHER TRAVEL PERSONAL OR BUSINESS
"The Department's long standing position that travel between the home and workplace is personal in nature is not altered by the fact that an...
IT-63R5 "Benefits, Including Stand-By Charge for an Automobile, from the Personal Use of a Motor Vehicle Supplied by an Employer - after 1992"
Articles
Yull, "New Automobile Rules Call for a Review of Remuneration Strategy", Taxation of Executive Compensation and Retirement, March 1994, p. 883.
A
Subparagraph A(iv)
Administrative Policy
14 March 2024 External T.I. 2015-0596761E5 F - Traitement fiscal
CRA confirmed that an employee may not utilize the computation method provided in s. (iv) of A for a particular year if the employee has not...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Improvements v. Repairs or Running Expense | expenditure on anti-theft marking of car likely would be on current account | 202 |
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(9) | practice is not to apply s. 18(9) where the adjustments would be minimal | 139 |
Subparagraph A(v)
Administrative Policy
2 February 2017 Quebec CPA Individual Taxation Roundtable Q. 1.5, 2016-0674801C6 F - Allocation et frais d'une automobile
The computation of the operating expense benefit under s. 6(1)(k) - A(v) and Reg. 7305.1 is $0.26 per km traveled for personal use, where the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(vii.1) | general reasonability of a car allowance rate of $0.54/$0.48 per kilometre including for electric vehicles | 184 |
Paragraph 6(1)(l) - Where standby charge does not apply
Administrative Policy
10 May 2001 Internal T.I. 2001-0065727 F - AVANTAGE - FONCTIONNEMENT AUTOMOBILE
S. 12(1)(y) can apply the standby charge under s. 6(1)(e) regarding an automobile made available to an employee of a partner, but does not apply...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(y) | unlike standby benefit, operating benefit for an employee of a partnership member is addressed by s. 6(1)(l) | 49 |
Commentary
S. 6(1)(b) includes all amounts received by the taxpayer "as an allowance for personal or living expenses or as an allowance for any other...