Subsection 67.1(1) - Expenses for food, etc.
Cases
Canada v. Stapley, 2006 DTC 6075, 2006 FCA 36
The taxpayer, who was a real estate agent, was only entitled to deduct one-half of the cost of gift certificates for food and beverages, and of...
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| Tax Topics - Statutory Interpretation - Resolving Ambiguity | 52 |
See Also
Rogers v. The Queen, 2014 DTC 1109 [at at 3230], 2014 TCC 101 (Informal Procedure)
Lyons J found that the taxpayer's arguments about the reasonableness of her meal costs as business expenses were irrelevant given the clear...
Stogrin v. The Queen, 2012 DTC 1021 [at at 2599], 2011 TCC 532 (Informal Procedure)
The taxpayer argued that the 50% limitation on meal expense deductions in s. 67.1 was discriminatory because it did not produce a roughly...
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| Tax Topics - Other Legislation/Constitution - Charter (Constitution Act, 1982) - Subsection 15(1) | 50 |
Transport Baie-Comeau Inc. v. The Queen, 2008 DTC 2839, 2006 TCC 108
The taxpayer, a long-haul trucking company, ceased to reimburse its drivers for their meal expenses and commenced paying them an additional...
Powrmatic du Canada Ltée, 94 DTC 1206, [1994] 1 CTC 2274 (TCC)
The taxpayer, which ran sales contests enabling its customers to be sent on trips to Latin America at discounted prices to them, was not precluded...
Administrative Policy
5 October 2018 APFF Roundtable Q. 8, 2018-0768791C6 F - Frais de repas
CRA effectively confirmed that by virtue of the combined operation of s. 8(4) and s. 67.1(1), the deduction for when a commissioned employee takes...
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| Tax Topics - Income Tax Act - Section 8 - Subsection 8(4) | commissioned employees can deduct only 25% of the restaurant tab when they take out a client in the city | 213 |
9 April 2018 External T.I. 2017-0714381E5 F - Application de l'article 67.1
Are amounts paid by a hockey player recruiter in the course of his employment for the purchase of tickets to attend hockey games subject to s....
4 November 2014 External T.I. 2014-0521211E5 F - Cartes-cadeau d'une chaîne de supermarchés
A corporation which promotes the sale of non-food products provides individuals who attend its product presentations with gift cards. The cards...
5 June 2013 Internal T.I. 2013-0490941I7 F - Expenses for food 67.1(1)
Is the agreement between the CRA and the Canadian Construction Association and the Canadian Association of Oilwell Drilling Contractors (released...
22 October 2012 External T.I. 2012-0452491E5 F - Repas fournis dans le cadre d'une formation
As part of the carrying on of its training business, the taxpayer provides breakfast and dinner, as well as a coffee break. Respecting the...
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| Tax Topics - Income Tax Act - Section 67.1 - Subsection 67.1(2) - Paragraph 67.1(2)(a) | Pink Elephant followed/potential exception for training business where it breaks out meals on its invoices | 212 |
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Know-How and Training | training expenses deductible (subject to s. 67.1(1)) provided that no new skill or qualification is acquired | 149 |
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(h) | deductibility of meal portion of training charges may be denied under s. 18(1)(h) | 114 |
1 June 2010 External T.I. 2009-0333481E5 F - Frais d'aliments et de boissons
The resident Taxpayer visited numerous restaurants each week, and prepared reviews, which were then disseminated through various media that are...
4 March 2010 Internal T.I. 2009-0337381I7 F - Sens du mot divertissement
Does the s. 67.1 limitation apply where a taxpayer trying to secure contracts from a customer provides the individual responsible for contracts...
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| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) | gifts of entertainment equipment by taxpayer to an employee of a customer responsible for purchases are includible in that individual’s income | 63 |
6 November 2007 Internal T.I. 2005-0152091I7 F - Frais de déplacement - activité de divertissement
The taxpayer provided periodic events for its top representatives, who were independent contractors. The Directorate, after referring to the...
8 November 2007 External T.I. 2006-0181621E5 F - Article 67.1 - Frais de transport et de logement
The taxpayer bears the expenses of inviting major customers to an event (described as an ”entertainment activity”) , including meal expenses,...
2 March 2007 External T.I. 2006-0185471E5 F - Frais de représentation - 67.1
CRA confirmed that a modified version of a 1998 agreement between the Commission de la Construction du Québec (the "CCQ") and CRA was in effect. ...
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| Tax Topics - Excise Tax Act - Section 236 - Subsection 236(1) | ITA s. 67.1 agreement as to portion of remote work site daily allowances to be treated as for meals rather than accommodation also applies to ETA s. 236 | 246 |
2 January 1994 Ministerial Letter 9405318 - DEDUCTIBILITY OF RESTAURANT MEALS
Gift certificates constitute food expenses, the deductibility of which is governed by s. 67.1(1).
Subsection 67.1(1.1)
Administrative Policy
10 November 2010 External T.I. 2010-0364751E5 F - Frais de repas des camionneurs
Respecting the effect of the amended version of s. 67.1(1.1) applicable to amounts paid or become payable after March 18, 2007, CRA noted that it...
Subsection 67.1(2) - Exceptions
Paragraph 67.1(2)(a)
See Also
Nicholls v. The Queen, 2011 DTC 1295 [at at 1666], 2011 TCC 39
The taxpayer carried on a business of providing information technology training courses, many of which were provided at a hotel where breakfast...
Administrative Policy
S3-F6-C1 - Interest Deductibility
1.91 Interest thereon. The restriction or prohibition of the deductibility of an expense under a specific provision…may also extend to interest...
22 October 2012 External T.I. 2012-0452491E5 F - Repas fournis dans le cadre d'une formation
As part of the carrying on of its training business, the taxpayer provides breakfast and dinner, as well as a coffee break. CRA first noted:
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| Tax Topics - Income Tax Act - Section 67.1 - Subsection 67.1(1) | trainees required to break out meal portion of their invoices even if not separately identified | 86 |
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Know-How and Training | training expenses deductible (subject to s. 67.1(1)) provided that no new skill or qualification is acquired | 149 |
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(h) | deductibility of meal portion of training charges may be denied under s. 18(1)(h) | 114 |
21 November 2014 External T.I. 2014-0553081E5 - Paragraph 67.1(2)(a)
In Pink Elephant, the exception in s. 67.1(2)(a) was applicable to a taxpayer who provided information technology training courses to its clients,...
4 March 2014 External T.I. 2014-0519051E5 - Meals and Entertainment Expenses
The Company is required to provide meals (i.e., hot meals, beverages, snacks, fruit etc.) to employees during certain events (not described), and...
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| Tax Topics - Income Tax Act - Section 67.1 - Subsection 67.1(2) - Paragraph 67.1(2)(d) | "paying customers" required | 83 |
14 September 2006 External T.I. 2006-0167861E5 F - Frais de représentation
A marketing and communication agency (the "Corporation"), as part of its engagements for raising awareness of client products, incurs restaurant...
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| Tax Topics - Income Tax Act - Section 67.1 - Subsection 67.1(2) - Paragraph 67.1(2)(c) | "specifically notified in writing" requirement is not satisfied where restaurant bills are included in fee estimates to clients but not explicitly in the ultimate invoices | 196 |
11 April 2003 External T.I. 2002-0173065 F - REPAS FOURNIS COURS SEMINAIRES
A corporation provides training courses to groups ranging from 5 to 20 participants and charges fees which include continental lunches and coffee...
16 May 1994 External T.I. 9407985 - TAVERNS PROVIDING FREE BEVERAGES
"Since the ordinary course of business of taverns is presumably to carry on a business of providing beverages for a compensation or an...
23 June 1992 T.I. 921136 (December 1992 Access Letter, p. 16, ¶C56-205)
The limitation in s. 67.1 generally would apply to expenditures of a radio broadcasting business on obtaining concert tickets or food or...
2 July 1991 T.I. (Tax Window, No. 5, p. 1)
A person in the business of providing dance instruction in conjunction with organized tours is not exempt under s. 67.1(2)(a) because the meals...
Paragraph 67.1(2)(c)
See Also
Kelowna Flightcraft Air Charter Ltd. v. The Queen, 2003 DTC 611, 2003 TCC 347
The taxpayer, which chartered out its aircraft to customers, paid the crew a per diem meal allowance. The meal allowance was deductible in full to...
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| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Improvements v. Repairs or Running Expense | 75 |
Administrative Policy
GI-197 “Out-of-Pocket Expenses” 17 December 2021
In the context of a discussion of the treatment of expenses incurred by a supplier of services to a client otherwise than as agent for the client,...
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| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Supply | 621 | |
| Tax Topics - General Concepts - Agency | listing of expenses typically not incurred as agent | 172 |
| Tax Topics - Excise Tax Act - Section 236 - Subsection 236(1) | no limitation where specific reimbursement per ITA s. 67.1(2)(c) | 183 |
14 September 2006 External T.I. 2006-0167861E5 F - Frais de représentation
A marketing and communication agency (the "Corporation"), as part of its engagements for raising awareness of client products, incurs restaurant...
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| Tax Topics - Income Tax Act - Section 67.1 - Subsection 67.1(2) - Paragraph 67.1(2)(a) | taxpayer is not considered to receive compensation for restaurant bills where they are included in its estimates but not explicitly in its invoices | 93 |
14 November 2001 External T.I. 2001-0086765 F - FRAIS DE REPRESENTATION-EXCEPTION
Canadian corporations incurred entertainment expenses in promoting foreign products, and bill their promotional costs to the foreign producers,...
28 May 2001 Internal T.I. 2001-0066147 F - ALIMENTS - MACHINES DISTRIBUTRICES
In the lunchroom for its plant, the taxpayer sells food and beverages purchased by it to its employees through vending machines leased by it. The...
Paragraph 67.1(2)(d)
See Also
Les Investissements Nolinor Inc. v. ARQ, 2023 QCCQ 3835
The taxpayer, which carried on a business of providing charter flights to generally remote locations, e.g., in Nunavut or Gabon, paid its pilots,...
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| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(e.2) | taxpayer in substance was the policyholder of the assigned policy | 104 |
Administrative Policy
18 December 2013 Internal T.I. 2012-0472211I7 F - Voyages offerts par une compagnie
The corporate "Taxpayer" annually offers an annual free trip to a southern location (perhaps a Caribbean resort) to its associated brokers and...
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| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) | Caribbean sales incentive trip provided to incorporated sales reps represents a benefit to them from their corporation | 392 |
| Tax Topics - Income Tax Act - Section 67.1 - Subsection 67.1(4) - Paragraph 67.1(4)(b) | Caribbean sales incentive trip is "entertainment" | 175 |
| Tax Topics - Income Tax Act - Section 9 - Nature of Income | Caribbean sales incentive trip provided to incorporated sales reps was s. 9 income to their corp to extent of personal portion | 171 |
4 March 2014 External T.I. 2014-0519051E5 - Meals and Entertainment Expenses
The Company is required to provide meals (i.e., hot meals, beverages, snacks, fruit etc.) to employees during certain events (not described), and...
| Locations of other summaries | Wordcount | |
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| Tax Topics - Income Tax Act - Section 67.1 - Subsection 67.1(2) - Paragraph 67.1(2)(a) | "paying customers" required | 83 |
13 June 2003 External T.I. 2002-0177045 F - BOISSONS OFFERTES AUX EMPLOYES
CCRA indicated that because the free provision by the employer of beverages was primarily for the benefit of the employees, there was a taxable...
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| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) | FMV of free beverages marketed by employer and provided to its employees included in their income | 86 |
6 August 2002 Internal T.I. 2002-0130897 F - RECOMPENSES ES QUASI-MONETAIRES
Would an employer who makes gifts to its employees of the purchase of a meal or a ticket to a show in reliance on CCRA’s new policy in Income...
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| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) | gift cards and smart cards with spendable balances do not come within the ITTN 25 gifts policy | 86 |
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(l) - Subparagraph 18(1)(l)(ii) | s. 18(1)(l)(ii) applies irrespective whether the membership is an employer gift within the ITTN 25 gifts policy | 109 |
18 January 1996 External T.I. 9502975 - MEAL EXPENSES
Meal reimbursements and allowances paid to employees who are transport drivers would generally be subject to s. 67.1(1) by virtue of not being...
17 February 1995 External T.I. 9504495 - MEAL EXPENSE REDUCTION
General discussion of the relationship between s. 67.1(2)(d) and s. 6(6).
Paragraph 67.1(2)(e)
See Also
Racco Industrial Roofing Ltd. v. R., 97 DTC 331, [1997] 2 CTC 3055 (TCC)
The Minister was unsuccessful in an argument that reasonable per diem meal allowances paid by the taxpayer to its employees did not qualify for...
Administrative Policy
17 September 1996 Memorandum 961800 (C.T.O. "Allowances v. Meals")
Allowances for board and lodging that are exempted from tax in the hands of an employee working at a special work site under s. 6(6)(a)(i) are not...
11 December 1995 Internal T.I. 9518687 - MEALS AND BEVERAGE
The 'place of business' refers to the location where these employees are considered to be employed, i.e., the employee's normal place of...
16 February 1995 Internal T.I. 9501607 - MEAL ALLOWANCE REDUCTION
The practice in the film and television industry of feeding actors and crew during filming would give rise to a taxable benefit to them under s....
8 August 1994 External T.I. 9410525 - FOOD AND BEVERAGE EXPENSES
The place where an event is held, such as conference facilities, do not constitute a "particular place of business" for purposes of s. 67.1(2)(e)....
19 January 1994 External T.I. 9319595 F - Restaurant Meals
A site which qualifies as a "special work site" for purposes of s. 6(6) should also qualify as a "particular place of business". RC will require...
17 July 1991 T.I. (Tax Window, No. 6, p. 12, ¶1355)
The longer the time required to complete a contract at customers' premises located outside the municipality where the employer's head office is...
18 January 1991 T.I. (Tax Window, Prelim. No. 3, p. 20, ¶1096)
Where the location or lack of catering facilities prevents the employer from directly providing the food, the employees can provide their own food...
Paragraph 67.1(2)(f)
Administrative Policy
22 January 2010 Internal T.I. 2009-0346971I7 F - Événement ayant lieu dans un club de golf
At a golf day organized for all its employees, the company pays for the green fees, the rental of golf equipment, and the food (shown separately...
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| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(l) - Subparagraph 18(1)(l)(i) | “facility” does not include a golf club's dining room, reception rooms, conference rooms, lounges or bar | 175 |
17 December 2002 External T.I. 2002-0158165 F - REPAS DE FETE OFFERTS PAR L'EMPLOYEUR
CCRA indicated that where an employer invites to a restaurant at the end of each month employees who have celebrated their birthday during that...
Subsection 67.1(4) - Interpretation
Paragraph 67.1(4)(a)
Administrative Policy
23 September 1996 Memorandum 961978 (C.T.O. "Food Served by Airlines")
The exemption in ss.67.1(4) and 67.1(2)(a) would cover the cost of food and beverages served by an airline prior to boarding, and between stops...
Paragraph 67.1(4)(b)
Administrative Policy
18 December 2013 Internal T.I. 2012-0472211I7 F - Voyages offerts par une compagnie
The corporate "Taxpayer" annually offers an annual free trip to a southern location (perhaps a Caribbean resort) to its associated brokers and...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) | Caribbean sales incentive trip provided to incorporated sales reps represents a benefit to them from their corporation | 392 |
| Tax Topics - Income Tax Act - Section 67.1 - Subsection 67.1(2) - Paragraph 67.1(2)(d) | Caribbean sales incentive trip provided to incorporated sales reps excluded if s. 6(1)(a) benefit to them qua employee | 178 |
| Tax Topics - Income Tax Act - Section 9 - Nature of Income | Caribbean sales incentive trip provided to incorporated sales reps was s. 9 income to their corp to extent of personal portion | 171 |
13 December 2004 Internal T.I. 2004-0097931I7 F - Définition de Divertissement - 67.1(4)
A corporation makes available to all its employees a fitness centre that it operates on the premises of its place of business and incurs related...
Subsection 67.1(5) - Definitions
Long-haul truck
Administrative Policy
3 June 2014 External T.I. 2014-0518911E5 F - Grand routier / long-haul truck
Does the gross vehicle weight rating refer to the loaded capacity and does it include the weight of a trailer? CRA stated (TaxInterpretations...