Subsection 8(1) - Deductions allowed
Paragraph 8(1)(a)
Cases
The Queen v. Patterson, 82 DTC 6326, [1982] CTC 371 (FCTD)
The deduction of traveling expenses pursuant to s. 8(1)(h) did not preclude a deduction pursuant to s. 8(1)(a).
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|---|---|---|
| Tax Topics - Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(h) | 28 |
Paragraph 8(1)(b) - Legal expenses of employee
Cases
Barkley v. Canada, 2021 FCA 5
The three directors (two siblings and a spouse) of a corporation incurred legal fees in defending an action brought by two other siblings...
Fenwick v. Canada, 2009 DTC 5525, 2008 FCA 370
Legal expenses incurred by the taxpayer in defending against a derivative action that was based on his allegedly having caused the corporation to...
Loo v. Canada, 2004 DTC 6540, 2004 FCA 249
The taxpayer and other lawyers employed in British Columbia by the Department of Justice sued the Department in the British Columbia Supreme Court...
Turner-Lienaux v. The Queen, 97 DTC 5294 (FCA)
Legal expenses that were laid out by the taxpayer to challenge the outcome of a public service competition in which another position with the same...
Fernando v. The Queen, 93 DTC 5412, [1993] 2 CTC 173 (FCTD)
Legal expenses (but not interest thereon) paid by a dismissed member of the Alberta Union of Public Employees in connection with a grievance...
Wilson v. The Queen, 90 DTC 6382 (FCTD), aff'd 91 DTC 5407 (FCA)
Legal expenditures made by a salaried school teacher in defending charges of rape and unlawful confinement were not deductible.
See Also
Clément v. The Queen, 2020 CCI 33 (Informal Procedure)
The taxpayer worked as a provisional judge for the Montreal Municipal Court up until 2005, and then served as a full-time judge up until 2012, at...
Kurnik v. The Queen, 2019 TCC 206 (Informal Procedure)
The taxpayer (Mr. Kurnik), who had been the CFO for a school uniform supplier, sued a successor to his employer (“RJM56”) for reneging on its...
Catlos v. The Queen, 2018 TCC 177, aff'd on other grounds, sub nom. Barkley v. Canada, 2021 FCA 5
The taxpayers were two siblings (Norman and Miriam) and Miriam’s spouse (Richard). Richard and Norman were senior executives of a family holding...
Ross v. The Queen, 2016 TCC 170 (Informal Procedure)
The taxpayer had been a pharmacist since 1990 in Sydney, Nova Scotia. The Nova Scotia College of Pharmacists held a discipline hearing with...
Allan v. The Queen, 2013 DTC 1072 [at 390], 2013 TCC 65
The taxpayer and his brother ran an illegal escort business through two corporations. The taxpayer incurred $48,164 in legal fees while...
Caruso v. The Queen, 2012 DTC 1200 [at 3511], 2012 TCC 233 (Informal Procedure)
Webb J. found that the taxpayer, a professional hockey player, could not deduct under s. 8(1)(b) the fees he paid to a sports agent corporation...
Lester v. The Queen, 2012 DTC 1030 [at 2642], 2011 TCC 543 (Informal Procedure)
The taxpayer was an employee and majority shareholder of a corporation. Lamarre J. found that legal fees he incurred were not deductible from his...
Chagnon v. The Queen, 2011 DTC 1205 [at 1216], 2011 TCC 268
The taxpayer, a former president of a corporation, sought to deduct legal fees arising from his successful defence to an action, in which the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 54 - Capital Property | 128 |
Blackburn v. The Queen, 2010 DTC 1073 [at 2898], 2010 TCC 69 (Informal Procedure)
The taxpayer, a police officer, was dismissed following a criminal charge for dangerous driving. He was convicted. He argued that he could...
Bonsma v. The Queen, 2010 DTC 1227 [at 3639], 2010 TCC 342 (Informal Procedure)
Legal fees incurred by the taxpayer in an action against his employer for termination of his employment were in respect of the establishing of an...
Kaushik v. The Queen, 2006 DTC 2277, 2005 TCC 207 (Informal Procedure)
Legal fees incurred by the taxpayer in defending both at the departmental level and at the level of the Dean of the Ontario Veterinary College a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Patents or other intangible property | 51 |
Cimolai v. The Queen, 2005 DTC 1800, 2005 TCC 767
Legal expenses incurred by the taxpayer, who was a doctor employed by a hospital, in an action against fellow doctors at the hospital in respect...
Farrell v. The Queen, 2005 DTC 842, 205 TCC 352
Legal fees incurred by the taxpayer in enforcing the payment to her of disability benefits by her former employer were deductible. The disability...
Blackburn v. The Queen, 2004 DTC 2409, 2004 TCC 180 (Informal Procedure)
Legal fees paid by the taxpayer in his unsuccessful defence against changes of dangerous driving, with his conviction at trial resulting in...
Blagdon v. The Queen, 2003 DTC 804 (TCC), aff'd 2003 DTC 5491, 2003 FCA 269
Legal expenses incurred by the taxpayer in a wrongful dismissal suit against his former employer were non-deductible given that the definition of...
L'Écuyer v. The Queen, 95 DTC 241 (TCC)
Legal expenses incurred by the taxpayer, who had been appointed for an indefinite term as a member of a municipal assessment tribunal, in seeking...
MacDonald v. MNR, 90 DTC 1751, [1990] 2 CTC 2269 (TCC)
Legal expenses incurred in order to obtain an amount as damages for wrongful dismissal were not deductible because the amount received was a...
Administrative Policy
11 April 2018 External T.I. 2017-0699751E5 - Deduction of legal expense
Q.2
Can a taxpayer request an amendment to a previous taxation year’s T1 return to claim a deduction for legal expenses paid in that year, if...
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...
19 November 2012 Internal T.I. 2012-0433201I7 - Legal fees incurred re: job reinstatement
Regarding a taxpayer's lawsuit for reinstatement of employment and associated retroactive pay, and to receive performance pay and other damages,...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 60 - Paragraph 60(o.1) | apportionment among objectives | 314 |
13 September 2012 Internal T.I. 2012-0442671I7 F - Dédommagement pour la perte de bénéfices
The former employees and retirees of a bankrupt corporation (the "Employer") received a lump for the cancellation of their rights in a group...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) - Subparagraph 6(1)(a)(i) | damages received after 2011 by employees of an insolvent company for cancellation of their medical plan have become taxable | 318 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Death Benefit | damages received for loss of life insurance coverage were not rendered a death benefit under the surrogatum principle | 319 |
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(3) | damages received by former employees of insolvent company for cancellation of their life insurance coverage were received in lieu of remuneration for their employment services | 285 |
23 November 2009 Internal T.I. 2009-0324731I7 F - Demande d'exemption administrative
An individual incurred legal fees to recover in excess of $80,000 in Quebec workers’ compensation payments. The Directorate stated:
Legal costs...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(v) | lump sum worker’s compensation payment could affect Pt. I.2 (OAS clawback) tax | 159 |
12 September 2006 Internal T.I. 2005-0147801I7 F - Déduction pour frais judiciaires d'un employé
In finding that legal fees, incurred by a public services employee after a fellow employee had filed a harassment complaint against her, were...
24 March 1995 External T.I. 9424305 - LEGAL FEES
Fees paid to a party other than a firm of barristers and solicitors could qualify as legal expenses if they can be regarded as being for services...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 60 - Paragraph 60(o.1) | 35 |
IT-99R4 "Legal and Accounting Fees" under "Collection of Salary and Wages"
Paragraph 8(1)(c) - Clergy residence
Commentary
Inclusion in clergy member's income where provision of manse or housing allowances
It is common for members of the clergy to receive a significant...
Cases
Canada v. Lefebvre, 2010 DTC 5042 [at 6691], 2009 FCA 307
The taxpayers, who were Roman Catholic pastoral agents, did not qualify for the clergy residence deduction in 8(1)(c). In 1956, the provision...
Canada (Minister of Citizenship and Immigration) v. Khan, 2005 DTC 5715, 2005 FC 398
The Tax Court Judge had not erred in finding that the taxpayer, who was engaged in full-time administrative service, had been appointed to his...
Rumford v. The Queen, 94 DTC 6121, [1994] 1 CTC 239 (FCA)
The taxpayer was not an employee of the Erindale Bible Chapel but instead held a position there as a "commended worker." His compensation...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Office | 101 |
Zylstra Estate and Small v. The Queen, 94 DTC 6687, [1995] 1 CTC 2392 (FCTD), aff'd sub-nominee McRae v. The Queen, 97 DTC 5124 (FCA)
The taxpayers, who were, respectively, the President of the Institute for Christian Studies ("ICS"), the Director of Alumni of Ontario Bible...
See Also
Lichtman v. The Queen, 2017 TCC 252 (Informal Procedure)
The taxpayers were ordained rabbis who taught Judaic studies curriculum to children attending the Vancouver Hebrew Academy (the “VHA”). In...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Statutory Interpretation - Noscitur a Sociis | noscitur a sociis and ejusdem generis compared | 257 |
Parker v. The Queen, 2015 DTC 1118 [at 745], 2015 TCC 86 (Informal Procedure)
The taxpayer's husband was a clergyman, who collected payments under the Canada Pension Plan and a long-term disability plan. He also claimed the...
Tidd v. The Queen, 2012 DTC 1060 [at 2785], 2012 TCC 16 (Informal Procedure)
The taxpayer was a member of the Toronto International Celebration Church ("TICC"), an evangelical church of over 2000 members with no formal...
Shaw v. The Queen, 2010 DTC 1144 [at 3267], 2010 TCC 210 (Informal Procedure)
The taxpayer, a chaplain at a correctional centre, received payment under her employer's wage replacement plan during her extended sick leave. ...
Kirkbride v. The Queen, 2003 DTC 966, 2003 TCC 229 (Informal Procedure)
The taxpayer was a facilities manager at a Pentecostal church who, in addition to his regular functions, was allowed to perform some duties...
Koop v. The Queen, 99 DTC 707, [1999] 3 CTC 2084 (TCC)
In finding that The Navigators were not a religious order, Bowman TCJ. noted (at p. 709) that "unlike the members of the other organizations...
Austin v. The Queen, 99 DTC 710, [1999] 2 CTC 2270 (TCC)
The taxpayer, who was a credentialed, but not ordained, minister of a large Pentecostal church in Winnipeg who devoted most of his time to musical...
Alemu v. The Queen, 99 DTC 714, [1999] 2 CTC 2245 (TCC)
Christian Horizons, which operated 115 group homes throughout Ontario attending to the needs of 850 developmentally challenged adults and children...
Fitch v. The Queen, 99 DTC 721, [1999] 2 CTC 2419 (TCC)
There was a sufficient degree of control by the Seventh-Day Adventist Church in Canada of the Canadian Union College, and by the Western Christian...
McGorman v. The Queen, 99 DTC 699, [1999] 3 CTC 2630 (TCC)
In finding that the Canadian Baptist Overseas Mission Board and the Society of International Ministries were religious orders, Bowman TCJ....
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Statutory Interpretation - Ordinary Meaning | 102 |
Kraft v. The Queen, 99 DTC 693, [1999] 3 CTC 2185 (TCC)
In finding that two Commended Workers of the Plymouth Brethren were "clergy", Bowman TCJ. stated that membership of the clergy "requires a formal...
Noseworthy v. R., [1999] 3 CTC 2108, 99 DTC 541 (Informal Procedure)
The taxpayer, who had been appointed as the Interfaith Chaplain at the Nova Institution for Women by the Roman Catholic Archdiocese of Halifax and...
Oligny v. The Queen, 96 DTC 1744, [1996] 2 CTC 2666 (TCC)
In finding that the Christian Service Brigade of Canada was not a religious order, Dussault TCJ. noted that members were not required to adhere to...
McNeil v. The Queen, 95 DTC 702 (TCC)
A priest, who served as a chaplain to the RCMP, and who practised as psychologist at the Community Health Services Association (the "Clinic") in...
Kolot v. MNR, 92 DTC 2391, [1993] 1 CTC 2047 (TCC)
A half-time staff associate at the Wesley United Church of Regina who was responsible for conducting Christian eduction including Sunday school,...
Administrative Policy
16 December 2004 Internal T.I. 2004-0098631I7 F - Déduction - Résidence des membres du clergé
Regarding lay pastoral workers who had been appointed to a team to participate in the exercise of the pastoral charge of the pastoral unit in...
23 January 2020 External T.I. 2019-0796121E5 F - Déduction pour résidence des membres du clergé
Is a regular minister, in addition to meeting the other conditions set out in IT-141R, required to maintain an office in the taxpayer's residence...
23 January 2014 External T.I. 2012-0467711E5 - Clergy Residence Deduction
An organization did not appear to qualify as a religious order as there was no indication of financial self-sacrifice or more rigorous working...
5 November 2013 Internal T.I. 2013-0494611I7 - Religious order
CRA reiterated its position in IT-141R that the characteristics indicative of a religious order are that:
- The purpose of the organization should...
4 June 2013 Internal T.I. 2012-0455961I7 - Clergy Residence Deduction
In principle, two clergy members who are spouses could claim the s. 8(1)(c) deduction in respect of two different properties, provided that each...
26 March 2010 External T.I. 2009-0350821E5 F - Montant assurable et ouvrant droit à pension
A pastor of the correspondent’s church is provided with housing free of charge, and does not receive a fixed and weekly remuneration but,...
29 July 2009 External T.I. 2009-0314611E5 F - Résidence pour membres du clergé à la retraite
Regarding the purchase by the Church of a residence for its retired pastors and missionaries, CRA stated:
Under [the function] test, the person...
12 June 2006 Internal T.I. 2006-0186041I7 F - Résidence des membres du clergé
In finding that a pastoral worker who led services in a Roman Catholic diocese but who was not ordained as a priest did not qualify for the...
11 May 2006 Internal T.I. 2006-0178781I7 F - Résidence des membres du clergé
In finding that the taxpayer, who held an M.A. in theology and was an employee within the Roman Catholic Church, was not entitled to the...
2 May 2005 External T.I. 2005-0115461E5 F - Résidence des membres du clergé
CRA indicated that certain priests, lay pastoral officers, and management and assistant management were not eligible for the clergy residence...
16 December 2004 External T.I. 2004-0093221E5 F - Résidence des membres du clergé
Regarding whether lay pastoral workers who were appointed for terms of 1 or 3 years were regular ministers for the purposes of the clergy...
28 April 2004 External T.I. 2004-006767
An employee of a particular religious organization, whose duties as a minister are reduced, would meet the function test provided ministering is...
9 August 1995 External T.I. 9510675 - CLERGYMAN'S RESIDENCE DEDUCTION
The Pastoral Associate/Co-ordinator of Religious Education at a Roman Catholic church who was engaged exclusively in full-time administrative...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(c) | 23 |
9 August 1995 External T.I. 9510675 - CLERGYMAN'S RESIDENCE DEDUCTION
The pastoral Associate/Co-Ordinator of religious education at a Roman Catholic Church would not qualify as a member of the clergy.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(c) | 40 |
28 July 1995 Internal T.I. 9513997 - FOR ADMIN OF XXXXXXXXXX
Walsh v. Lord Advocate, [1956] 3 All E.R. 129 established that in order for there to be a "religious denomination" there must be a lay element...
27 March 1992 T.I. and 15 April 1992 Memorandum (Tax Window, No. 18, p. 8, ¶1835)
Where both members of a couple are members of the clergy each performing duties which qualified them separately for the deduction, then where the...
Subparagraph 8(1)(c)(iv)
See Also
Hoch v. The Queen, 2019 TCC 99
The taxpayer and his wife lived in a Toronto home which was beneficially owned as to 3/8ths and 5/8ths by them, and the shul employing him as its...
Paragraph 8(1)(f) - Sales expenses
Commentary
S. 8(1)(f) permits a commissioned salesperson to deduct amounts expended by him or her for the purpose of earning income from employment to the...
Cases
Urquhart v. Canada, 2016 FCA 76
The taxpayer was employed under an oral contract by a Ford dealership in Miramichi, New Brunswick. In allowing the taxpayer’s appeal from the...
Gifford v. Canada, 2004 DTC 6120, 2004 SCC 15, [2004] 1 S.C.R. 411
The acquisition by the taxpayer, who was employed as a broker by an investment dealer, of the customer lists of a departing employee of the same...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Financing Expenditures | loan received on capital account if it is an addition to borrower's capital (cf. inventory) | 174 |
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Goodwill, Trademarks and Customer Lists | 70 |
Hudema v. The Queen, 94 DTC 6287 (FCTD)
The taxpayer was not required to "pay his own expenses" as required by s. 8(1)(f) or "to pay the travelling expenses incurred by him" as required...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(v) | 162 |
The Queen v. Gilling, 90 DTC 6274, [1990] 1 CTC 392 (FCTD)
Part of the responsibilities of the manager of a grain elevator pool was the sale on a commission basis of farm supplies, in connection with which...
Verrier v. The Queen, 90 DTC 6202, [1990] 1 CTC 313 (FCA)
The taxpayer, who was a highly successful automobile salesmen employed by a Winnipeg dealership, deducted in computing his commission income:...
The Queen v. Malik, 89 DTC 5141, [1989] 1 CTC 316 (FCTD)
Reed, J. rejected an argument that interest on a loan that was no longer being used by the taxpayer to earn income from property was deductible...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) | 31 |
See Also
Griesbach v. Canada (M.N.R.), 91 DTC 142, [1990] 2 CTC 2593 (TCC)
The taxpayer's bonuses were not "commissions" for the purposes of s. 8. Christie J. stated (at para. 5):
To my mind the result is that in order...
Lavigne v. The Queen, 2014 DTC 1018 [at 2615], 2013 TCC 308 (Informal Procedure)
The taxpayer worked in sales, and sought to deduct approximately $44,000 in entertainment and meal expenses in respect of two years. Favreau J...
Lequier v. The Queen, 2013 DTC 1012 [at 68], 2012 TCC 380
The taxpayer sold videos on commission and worked from an office in his home, and claimed deductions for home office expenses and for travel to...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose | 82 |
Czerczak v. The Queen, 2011 DTC 1005 [at 23], 2010 TCC 612 (Informal Procedure)
Lamarre J. denied the taxpayer's deduction of employment-related expenses. At para. 32: "[given that] the employer reimbursed all reasonable...
Cirone v. The Queen, 2010 DTC 1103 [at 3034], 2010 TCC 137
Paris J. at paras. 13-14:
While the task of proving expenses is made more difficult where a taxpayer has not kept any records or receipts, it is...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Evidence | oral evidence of accountign transactions | 134 |
Raphael v The Queen, 2008 DTC 3559, 2008 TCC 202
Damages and legal fees that the taxpayer, who was a commission salesman at an investment dealer, became liable to pay to that investment dealer as...
Douthwright v. The Queen, 2007 DTC 1614, 2007 TCC 560 (Informal Procedure)
Sums totalling $11,125 which the taxpayer was required to pay to his former employer (BMO Nesbitt) pursuant to settlement of an action brought...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Onus | 67 |
Ross v. The Queen, 2005 DTC 663, 2005 TCC 286
The taxpayer, who was a security salesman earning substantial commission income, was entitled to deduct substantial losses (in the range of...
Furman v. The Queen, 2003 DTC 723, 2003 TCC 298 (Informal Procedure)
A lawyer employed by a law firm was found not to be employed in connection with the selling of property or negotiating of contracts for his...
Frappier v. The Queen, 98 DTC 1521 (TCC)
The taxpayer, who was "a highly successful and aggressive business person whose principal stock-in-trade [was] her reputation, her expertise and...
No. 149 v. MNR, 54 DTC 142, 10 Tax ABC 147
The taxpayer, who was the vice-president of a corporation and was paid a fixed salary plus a percentage of the corporation's profits, was not...
Administrative Policy
18 February 2015 External T.I. 2012-0471731E5 F - Déductibilité du droit d’usage pour automobile
The “Employer” provides a commissioned sales person (who satisfies the s. 8(1)(f) conditions) with an automobile, and includes in the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(2) | no reduction in benefit amount for benefits provided by employee to employer | 226 |
11 April 2016 External T.I. 2015-0564161E5 F - IT-522R par. 36
An employee (the "Seller"), who performed duties related to the selling of property for an employer, received a reasonable allowance, for example,...
8 October 2010 Roundtable, 2010-0373481C6 F - Remboursement de commissions
An employee received an $80,000 sales commission in 2008 but was required to repay the commission in 2009 consequent on the cancellation of the...
23 April 1991 T.I. (Tax Window, No. 2, p. 22, ¶1210)
An incentive award based on the achievement of pre-determined sales targets, personal utilization rates and on qualitative management criteria set...
13 January 1989 Memorandum (June 1990 Access Letter, ¶1299)
RC accepts the Neville case as a precedent.
Articles
Beam, Laiken, "Employee Deductions", 1991 Canadian Tax Journal, p. 338.
Paragraph 8(1)(g) - Transport employee’s expenses
Commentary
S. 8(1)(g) permits employees of a person whose principal business is the transport of passengers and/or goods to deduct qualifying expenditures...
Cases
Renko v. Canada (Attorney General), 2003 DTC 5417, 2003 FCA 251
The phrase "meals and lodging" was to be read conjunctively, with the result that a deduction claimed in respect of meals alone was properly...
Walls v. The Queen, 76 DTC 6309, [1976] CTC 501 (FCTD)
The establishment of the taxpayer's employer to which he reported to work was in Windsor. He was entitled to deduct unreimbursed meal expenses...
See Also
Elwood v. The Queen, 2012 DTC 1268 [at 3792], 2012 TCC 313 (Informal Procedure)
Campbell J. found that, although Crawford provides that an employee must have meal and lodging expenses in order to qualify for a s. 8(1)(g)...
Kasaboski v. The Queen, 2005 DTC 846, 2005 TCC 356 (Informal Procedure)
The taxpayers were a husband and wife truck-driving team who were on the road generally for two weeks at a time during which they slept in a bunk...
Crawford v. The Queen, 2002 DTC 1883 (TCC) (Informal Procedure), aff'd sub nom. Renko
The taxpayers, who purchased their meals while operating ferries, but who returned to their homes each evening, were not entitled to the...
Foster v. MNR, 83 DTC 620, [1983] CTC 2673 (TCC)
In finding that the municipalities of Maple Ridge and Langley were part of the metropolitan area of Vancouver, Rip TCJ. noted that there were...
Administrative Policy
2 June 2006 External T.I. 2006-0174671E5 F - Frais de repas et de logement
In finding that employees of a company working in the field of pumping and transporting liquid waste and who typically were required to drive more...
27 July 1998 External T.I. 9807745 - LANGLEY, ABBOTSFORD, NISKU AND YALE AS PART OF METRO
Langley and Abbotsford are part of the metropolitan Vancouver area, and Nisku is part of the metropolitan Edmonton area.
8 February 1994 Internal T.I. 9400657 - EMPLOYMENT EXPENSES
General discussion.
Paragraph 8(1)(h) - Travel expenses
Commentary
S. 8(1)(h) provides for the deduction of amounts expended by a taxpayer for traveling in the course of the taxpayer's office or employment...
Cases
Imray v. The Queen, 98 DTC 6580, 1998 CanLII 8609 (FC) (FCTD)
The taxpayer was required to attend an annual professional development seminar for teachers and had done so for 28 of the previous 29 years. In...
Tremblay v. The Queen (1997), 223 N.R. 85, 1997 CanLII 5678 (FCA (FCA)
After the taxpayer, who lived in Val Bélair, was hired by the RCMP, he was immediately sent to Montreal to take an English course from September...
The Queen v. Chrapko, 88 DTC 6487, [1988] 2 CTC 342 (FCA)
The taxpayer worked 75% of his time as an employee of the Ontario Jockey Club at two race tracks in Toronto, and 25% of his time at a race track...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 5 - Subsection 5(1) | 59 |
The Queen v. Patterson, 82 DTC 6326, [1982] CTC 371 (FCTD)
Automobile expenses incurred by a school principal as a consequence of attending numerous School Board meetings, student sports events and student...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(a) | 20 |
The Queen v. Diemert, 76 DTC 6187, [1976] CTC 301 (FCTD)
A locomotive engineer who lived in Regina but for the most part was assigned to work for five or six days at a time in Assiniboia was unable to...
See Also
MacDonald v. The Queen, 2019 TCC 169 (Informal Procedure)
The taxpayer flew on a close to weekly basis back and forth between his Ottawa home and the Regina (or Moose Jaw) office of his employer (ATI). ...
Brown v. The Queen, 2013 DTC 1035 [at 167], 2012 TCC 452 (Informal Procedure)
A taxpayer who resided in Calgary regularly piloted flights between Los Angeles and Hong Kong. C Miller J found that the taxpayer could not...
Vickers v. The Queen, 2011 DTC 1066 [at 354], 2011 TCC 2 (Informal Procedure)
When the taxpayer resigned from his employment as an investment advisor at RBC, he took a job at TD Waterhouse in Ottawa. Not wanting to move his...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(i) - Subparagraph 8(1)(i)(ii) | 76 |
Freake v. The Queen, 2009 DTC 2071, 2009 TCC 568 (Informal Procedure)
The taxpayer, who maintained a family home in Newfoundland, spent 2006 working as a journeyman lineman on projects in Virginia and California.
In...
Blackburn c. La Reine, 2008 DTC 2937, 2007 TCC 284 (Informal Procedure)
Jorré J. at para. 42:
If an individual who lives in one city takes a job in another city that is very far from his or her home, he or she cannot...
Ménard c. La Reine, 2006 DTC 2515, 2004 TCC 516
The taxpayer was a longshoreman employed by the Maritime Employers' Association. Because each of the docks of the Port of Montreal at which he...
Gariépy c. La Reine, 2005 DTC 1744, 2005 TCC 318 (Informal Procedure)
The taxpayer was hired as a fire chief for the fire department for the City of Salaberry and was required for one week out of every three to be on...
Delancy v. The Queen, 2004 DTC 2907, 2004 TCC 465 (Informal Procedure)
The taxpayer, who was a U.S. resident, and was employed as a football player by the Toronto Argonauts and the Calgary stampeders, sought to deduct...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 115 - Subsection 115(1) - Paragraph 115(1)(f) | 58 |
Homsy v. The Queen, 2004 DTC 2390 (TCC)
The taxpayer, who worked as a provincial tax auditor, would travel directly from her home to the site of the business being audited by her rather...
Administrative Policy
18 March 2014 External T.I. 2012-0438941E5 - Deduction of expenses against executor fees
An executor of an estate is considered to earn fees from an office rather than in the course of a business. The executor incurs expenses, with the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Office | executor holding an office | 34 |
22 March 2011 Internal T.I. 2010-0387551I7 F - Dépenses - travailleur indépendant
The taxpayer operated an erotic website for which she was the model and her husband took care of the technical side, with profits split equally. ...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 8 - Paragrpah 8(i) | erotic costumes used on website did not qualify | 122 |
12 February 1998 External T.I. 9730335 - DEDUCTIBILITY OF MOTOR VEHICLE TRAVEL EXPENSES
Employees, who cannot reside in the community because of cultural constraints, will not be able to deduct their travel expenses between their...
9 February 1990 Memorandum (July 1990 Access Letter, ¶1313)
Tree planters who report to several job sites in the course of the year and who cannot be considered to regularly or ordinarily report to any one...
11 January 1990 Memorandum (June 1990 Access Letter, ¶1249)
Explanation as to why neither s. 8(1)(g) or (h) permits the deduction of the cost of food used for a meal which an individual carries from home to...
9 August 1989 Directive ASG-89-30 (June 1990 Access Letter, ¶1288)
Guidelines respecting whether an employee is ordinarily required to carry on his employment duties away from the employer's place of business and...
9 January 1989 Memorandum (June 1990 Access Letter, ¶1294)
In light of the Chrapko decision, a determination will have to be made of each employee's attendance at a particular track in order to locate the...
Subparagraph 8(1)(h)(i)
Cases
The Queen v. Phyllis Moore, 90 DTC 6200, [1990] 1 CTC 311 (FCA)
It was an implied term of a school principal's employment contract that she travel away from the school premises in connection with such matters...
The Queen v. Wright, 81 DTC 5004, [1981] CTC 14 (FCTD)
The taxpayer, who was employed by a construction company with its head office in London, Ontario, commuted throughout the 1975 taxation year...
See Also
Toutov v. The Queen, 2006 DTC 2928, 2006 TCC 187 (Informal Procedure)
The taxpayer, who was employed as a programmer and was allowed to work from his home in Kingston, was required by his employer to travel, at his...
Gutscher v. The Queen, 2006 DTC 2485, 2006 TCC 163 (Informal Procedure)
The cost to the taxpayer incurred in driving from Ottawa (where he was employed by the army) to Cobalt, Ontario to visit with his family were not...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(h.1) | 57 |
Administrative Policy
12 April 2017 External T.I. 2016-0642571E5 - Employee travel - board and lodging
Employees travel from home to a remote forest camp where they receive board and lodging for a charge. Their employeer transports them daily...
Subparagraph 8(1)(h)(ii)
Cases
The Queen v. Mina and Jacobi, 88 DTC 6245, [1988] 1 CTC 380 (FCTD)
Educational consultants employed by the North York Board of Education were entitled to deduct automobile expenses incurred by them in connection...
Hoedel v. The Queen, 86 DTC 6535, [1986] 2 CTC 419 (FCA)
The taxpayer, who was a member of the Canine Division of the Regina Police Department, was provided with a vehicle that was specially adapted for...
The Queen v. Jeromel, 86 DTC 6370, [1986] 2 CTC 207 (FCTD)
It was held that the taxpayer, who was granted a one-year sabbatical from his duties as a teacher for the purpose of undertaking graduate studies,...
Rozen v. The Queen, 85 DTC 5611, [1986] CTC 50, [1986] 1 CTC 50 (FCTD)
A staff accountant at Thorne Riddell was required as an implied term of his employment contract to use his automobile in the course of performing...
The Queen v. Cival, 83 DTC 5168, [1983] CTC 153 (FCA)
It is not sufficient that under a contract of employment the employer undertook to reimburse the employee on a mileage basis for expenses that he...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(vii) | 16 |
See Also
Stokes v. The Queen, 93 DTC 201, [1993] 1 CTC 2066 (TCC)
The taxpayer was able to establish that an automobile was the most practical and most reasonable way for him to perform his duties as a "checker"...
Administrative Policy
8 February 1994 T.I. 940065 (C.T.O. "Employment Expenses")
The fact that the employee is not required to use her own personal vehicle but chooses to do so, as an option under the employment contract, does...
86 C.R. - Q.75
The decision in Cival emphasized that the employee must be contractually bound to provide the automobile.
Subparagraph 8(1)(h)(iii)
See Also
Fitzpatrick v. IRC; Smith v. Abbot, [1994] BTC 66 (HL)
Expenditures of journalists on the purchase of newspapers and periodicals which they read primarily at home did not qualify for a deduction from...
Administrative Policy
11 July 1995 External T.I. 9508235 - WORK SPACE DEDUCTIBLE AS SUPPLIES
"Workspace expenses which are deductible as 'supplies' under subparagraph 8(1)(i)(iii) of the Act consist of a reasonable proportion of expenses...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(i) - Subparagraph 8(1)(i)(iii) | 74 | |
| Tax Topics - Income Tax Act - Section 8 - Subsection 8(13) | 29 |
6 June 1995 Internal T.I. 9502987 - WORK SPACE IN THE HOME
A T2200 may be issued to an employee who is an auditor whose duties are performed for the most part at the taxpayer's place of business and at an...
22 July 1994 T.I. 941204 (C.T.O. "Employment and Teachers' Supplies") (See also 941752)
Regarding the deductibility of expenses incurred by teachers to purchase supplies for use in their classrooms, RC stated: "In order to determine...
18 July 89 T.I. (Dec. 89 Access Letter, ¶1042)
Where the employer provided an allowance for trips exceeding 15 kilometres which were non-taxable by virtue of s. 6(1)(b)(vii.1), the employee...
Articles
Wilson, "Employment Status Under the Income Tax Act", 1993 Conference Report, pp. 2:10-11: Discussion of meaning of "supplies".
Paragraph 8(1)(h.1) - Motor vehicle travel expenses
Commentary
S. 8(1)(h.1) is similar to s. 8(1)(h), except that the former deals only with motor vehicle expenses, which are excluded from the scope of...
Cases
Hogg v. Canada, 2002 DTC 7037, 2002 FCA 177
The taxpayer, who was a judge of the Ontario Provincial Court, Criminal Division, was not able to deduct the cost of travelling to and from his...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Statutory Interpretation - French and English Version | 48 |
See Also
Gardner v. The Queen, 2020 TCC 108 (Informal Procedure)
The taxpayer, a sales representative employed by a Canadian company (CCI) that was part of a multinational cosmetics group, did most of her work...
Kreuz v. The Queen, 2012 DTC 1201 [at 3514], 2012 TCC 238 (Informal Procedure)
The taxpayer was a substitute teacher for two school boards, and would be called from time to time to work at the school boards' various...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Estoppel | 146 | |
| Tax Topics - General Concepts - Res Judicata | 146 | |
| Tax Topics - Income Tax Act - Section 162 - Subsection 162(2) | 64 |
Zembal v. The Queen, 2011 DTC 1119 [at 668], 2011 TCC 145 (Informal Procedure)
The taxpayer, a bulldozer operator, used his vehicle to transport and store tools which were essential for bulldozer maintenance. Sheridan J....
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 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(vii.1) | 202 |
Martorelli v. The Queen, 2010 DTC 1156 [at 3313], 2010 TCC 216 (Informal Procedure)
The taxpayer worked throughout the year at a construction site 50 kilometers away from his home, for which his employer gave him a transportation...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 400 - Subsection 400(2) | 90 |
Gutscher v. The Queen, 2006 DTC 2485, 2006 TCC 163 (Informal Procedure)
The cost to the taxpayer incurred in driving from Ottawa (where he was employed by the army) to Cobalt, Ontario to visit with his family were not...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(h) - Subparagraph 8(1)(h)(i) | 57 |
O'Neil v. The Queen, 2000 DTC 2409 (TCC) (Informal Procedure)
The taxpayer, who was responsible for the safety and security of employees of the City of Ottawa at its numerous properties, was required to use...
Administrative Policy
10 June 2021 External T.I. 2017-0696041E5 - Automobile Taxable Benefits
CRA also was asked about employees who are provided with electric vehicles for use in performing their employment duties and who are required to...
| 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 6 - Subsection 6(1) - Paragraph 6(1)(k) | reasonable per-kilometer charge could be used to infer electric vehicle charging costs | 217 |
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 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(vii.1) | where the employee alternates between a close and distant regular place of work, travel expenses to both locations are personal | 164 |
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 6 - Subsection 6(1) - Paragraph 6(1)(k) | operating expense benefit from vehicle charging station reduced by employee's related personal electricity bill | 90 |
2 February 2017 Quebec CPA Individual Taxation Roundtable Q. 1.7, 2016-0674811C6 F - Allocations automobiles & dépenses afférentes
In discussing the situation where an employer limits the number of kilometers travelled by an employee in the course of employment for which it...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 200 - Subsection 200(3) | correction of T4s | 177 |
27 October 2014 External T.I. 2013-0507001E5 F - Obligation de remplir un T2200 pour un employé
Does the employer have an obligation to complete a form T2200 at the employee's request? CRA responded (TaxInterpretations translation):
An...
19 August 2014 External T.I. 2014-0529741E5 F - Frais afférents à un véhicule à moteur (chantiers)
A construction employee is required to go from his residence to the various work sites of his employer. He works only a few days per construction...
11 October 2013 Roundtable, 2013-0495591C6 F - Déplacement entre résidence et chantier
Can a construction worker who is called upon to travel to about 30 construction sites annually at the request of his employer treat travel to and...
5 October 2012 Roundtable, 2012-0454141C6 F - Déductibilité des frais afférents à un véhicule
Interpretation 2010-0387391E5 indicated, respecting construction employees who travelled in their cars between different work sites to which they...
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 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(x) | allowance taxable (but s. 8(1)(h.1) deduction) where 2 different rates | 199 |
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 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(x) | car allowance bifurcated into 2 allowances: reasonable per-kilometre allowance; and unreasonable minimum allowance | 216 |
2 December 2004 External T.I. 2004-0083931E5 F - Frais relatifs à une garantie prolongée
Regarding the deductibility of the cost of an extended warranty on an automobile paid by an employee, CRA stated:
[T]he conditions of paragraph...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(9) | cost of extended car warranty is subject to s. 18(9) | 79 |
12 September 1997 Internal T.I. 9716457 - WHETHER REQUIRED BY CONTRACT TO PAY EXPENSE
The requirement that the employee be required under the contract of employment to pay the motor vehicle expenses "may also be considered to have...
Paragraph 8(1)(i) - Dues and other expenses of performing duties
Subparagraph 8(1)(i)(i)
Commentary
S. 8(1)(i)(i) provides for the deduction in computing a taxpayer's income from an office or employment of annual professional membership dues...
Cases
Montgomery v. Canada, 99 DTC 5186, [1999] 2 CTC 196 (FCA)
The taxpayer, a Revenue Canada appraiser to the Appraisal Institute of Canada, who paid fees to the Appraisal Institute of Canada, which was not...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Statutory Interpretation - Redundancy/reading in words | Appraisal Institute recognized by statute where statutes or Regulations required appraisals to be performed by members | 46 |
The Queen v. Mousseau, 95 DTC 5089, [1995] 2 CTC 431 (FCTD)
An appraiser who was required to pay annual dues to the Appraisal Institute of Canada in order to maintain his A.A.C.I. designation was unable to...
James Alonzo Petrin v. Her Majesty The Queen, 91 DTC 5266, [1991] 1 CTC 94 (FCTD)
Because the Appraisal Institute of Canada and the Institute of Municipal Assessors are not recognized by statute, annual professional membership...
The Queen v. Swingle, 77 DTC 5301, [1977] CTC 448 (FCTD)
A highly educated chemist who was employed by the federal Department of Transport and who was designated as an analyst pursuant to S.731(1) of the...
See Also
Auclair c. La Reine, 2013 DTC 1199 [at 1058], 2013 TCC 188 (Informal Procedure)
The taxpayer left his position at an airline soon after having been sent to a $12,000 flight course. Pursuant to his employment contract, he...
Shearman v. The Queen, 2006 DTC 2678, 2006 TCC 143 (Informal Procedure)
The taxpayer was not entitled to amounts paid to the Canadian Physiotherapy Association (the "CPA") comprising a insurance fees and membership...
Laithwaite v. The Queen, 95 DTC 710 (TCC)
A requirement pursuant to the Expropriation Act (B.C.) that an appraisal report be prepared by an accredited person (including a person designated...
Institute of Leisure and Amenity Management v. C. & E. Cmners, [1988] BTC 5160 (Q.B.D.)
The members of a non-profit organization formed to provide a central organization for persons described as engaged in the "profession" of leisure...
Administrative Policy
8 August 2019 Internal T.I. 2019-0804641I7 - Professional Dues 8(1)(i)(i)
To be eligible for an Active Membership in the “Society,” various requirements respecting educational requirements were specified. In...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Schedules - Schedule V - Part VI - Section 18 | recognition by statute can include recognition by regulation | 150 |
21 June 2007 External T.I. 2005-0157861E5 F - Cotisation professionnelle
In finding that annual dues paid by municipal employees and officers as members of the Corporation des officiers municipaux agrées du Québec...
2 August 2005 External T.I. 2005-0112871E5 F - Cotisation professionnelle
The Municipal Officers' Corporation of Quebec ("COMAQ"), a professionals corporation incorporated under a private act, had over 550 members who...
27 October 2004 External T.I. 2004-0080901E5 F - Cotisation professionnelle-frais de traduction
Mr. A, who came to Canada to practise his profession as an employee, paid fees for the translation of his education program and degree documents...
11 September 1996 External T.I. 9622535 - ANNUAL PROFESSIONAL MEMBERSHIP DUES
A trainee enrolled as a member of the Association of British Columbia Professional Foresters is not entitled to the deduction because the trainee...
1995 Institute of Chartered Accountants of Alberta Round Table, Q. 6 (C.T.O. "Professional Dues" No. 9511910)
In accordance with RC's policy of fairness, professional membership dues that are paid by an employer and included on the employee's T4 as a...
23 June 1995 External T.I. 9500855 - PROFESSIONAL DUES
With respect to the situation where annual fees payable to the Barreau du Quebec are paid by the employer, RC stated that it "considers that an...
13 July 1992 T.I. 921266 (January - February 1993 Access Letter, p. 9, ¶C5-183)
The amount of professional membership dues deductible under s. 8(1)(i)(i) includes GST paid thereon.
22 January 1991 Memorandum (Tax Window, Prelim. No. 3, p. 20, ¶1082)
In the case where the payment of professional membership fees of an employee by his employer is a taxable benefit, the fees are deductible to the...
Subparagraph 8(1)(i)(ii)
Commentary
S. 8(1)(i)(i) provides for the deduction from a taxpayer's income from an office or employment of office rent, or the salary of an assistant or...
Cases
Blott v. The Queen, 2018 TCC 1 (Informal Procedure)
The taxpayer, a securities dealer employee, claimed a deduction for salary to his wife of $12,000 per annum for her administrative support. In...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Payment & Receipt | giving a spouse access to a joint account was not payment to her | 160 |
The Queen v. Thompson, 89 DTC 5439, [1989] 2 CTC 226 (FCTD)
A salesman was not permitted to deduct a portion of his home mortgage payments, alleged to relate to his home office, as "rent". McNair quoted...
See Also
Massicolli v. The Queen, 2013 DTC 1049 [at 266], 2012 TCC 344
The salary paid by the taxpayer (a commissioned securities broker) to his wife was non-deductible given his admission that the decision to hire...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 67 | 234 |
Vickers v. The Queen, 2011 DTC 1066 [at 354], 2011 TCC 2 (Informal Procedure)
The taxpayer, employed as an investment advisor, hired his wife as an assistant. Hogan J. found that her salary was not a deductible employment...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(h) | 125 |
Longtin v. The Queen, 2006 DTC 3254, 2006 TCC 335
In finding that the taxpayer, a sales person on salary and commission, was entitled to deduct the salaries of over $26,000 he paid to his wife...
Aprile v. The Queen, 2005 DTC 585, 2005 TCC 216 (Informal Procedure)
Bell J. rejected the Crown's submission that the taxpayer can only make a deduction under s. 8(1)(i) for amounts paid in cash or by cheque with...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Payment & Receipt | payments in kind | 74 |
Schnurr v. The Queen, 2004 DTC 3531, 2004 TCC 684
Bowman A.C.J. found that it was implicit in the relationship between the taxpayer and his employer (a brokerage firm) that in order to generate...
Williams v. The Queen, 2004 DTC 3549, 2004 TCC 706
The taxpayer, who was a security analyst for a brokerage firm, was responsible for employment expenses which he incurred in performing his duties...
Glen v. The Queen, 2003 DTC 2109, 2003 TCC 807 (Informal Procedure)
Payments made by a professional appraiser, who was employed part-time as a lecturer at a university, to assistants for the marking of exams were...
Felton v. MNR, 89 DTC 233, [1989] 1 CTC 2329 (TCC)
Since at common law "rent" connates only a payment arising out of a landlord-tenant relationship, home office expenses of the taxpayer (i.e., a...
Administrative Policy
28 March 2019 External T.I. 2019-0799241E5 F - Dépenses d'emploi (employé qui n'est pas à commission)
At the October 2018 APFF Roundtable (2018-0768871C6 F), CRA indicated that the home office expenses of an employee (other than a commission...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 8 - Subsection 8(13) | home office expenses generally cannot include property taxes or insurance | 187 |
10 November 2006 External T.I. 2006-0174681E5 F - Salaire versé par un employé à un adjoint
Mr. A pays salary to an assistant whom he hired to assist him in the performance of his employment duties as an advisor at a brokerage on...
8 February 1994 Internal T.I. 9400657 - EMPLOYMENT EXPENSES
Although ordinarily the requirement in the contract of employment to provide a work space necessitates that there be an expressed requirement in...
Subparagraph 8(1)(i)(iii)
See Also
Meberatu v. The Queen, 2017 TCC 211 (Informal Procedure)
The taxpayer was a personal support worker who had deducted alleged work-related expenses in computing her employment income for her 2010 to 2012...
Glen v. The Queen, 2003 DTC 2109, 2003 TCC 807 (Informal Procedure)
The cost of software that the taxpayer purchased for use in connection with his part-time teaching duties was deductible. McArthur J. stated at...
Cuddie v. The Queen, 98 DTC 1822, [1998] 3 CTC 2232 (TCC)
After quoting from a statement in Luks No. 2 v. MNR, 58 DTC 1194 (Ex Ct) that "supplies" are "things which are consumed in the performance of the...
Administrative Policy
14 March 2013 External T.I. 2012-0472361E5 F - Fournitures/outils - guides de pêche
Employed fishing outfitters and guides provide materials, such as salmon flies or filament to repair fishing lines, to clients, to ensure the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(s) | materials provided to clients were not “tools" | 195 |
11 July 1995 External T.I. 9508235 - WORK SPACE DEDUCTIBLE AS SUPPLIES
"Work space expenses which are deductible as 'supplies' under subparagraph 8(1)(i)(iii) of the Act consists of a reasonable proportion of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(h) - Subparagraph 8(1)(h)(iii) | 46 | |
| Tax Topics - Income Tax Act - Section 8 - Subsection 8(13) | 29 |
26 July 1994 External T.I. 9415455 - EMPLOYMENT BENEFITS - SPECIAL CLOTHING
The word "supplies" is limited to materials that are used up directly in the performance of the duties of employment, and does not include special...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) | 30 |
9 February 1994 Internal T.I. 9335877 F - Clothing Allowance
The word "supplies" is limited to materials that are used up directly in the performance of the duties of employment, such as gasoline and oil...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) | 77 |
Subparagraph 8(1)(i)(iv)
Cases
Crowe v. Canada, 2003 DTC 5288, 2003 FCA 191
Dues paid by the taxpayer to the Alberta Provincial Judges' Association were not deductible given that "as ordinarily understood, the term 'public...
Lucas v. The Queen, 87 DTC 5277, [1987] 2CTC 23 (FCTD)
Dues in order to be considered annual must be of a recurring kind, as opposed to initiation or entrance dues paid once and for all on becoming a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Statutory Interpretation - Resolving Ambiguity | 25 |
See Also
Whitby v. MNR, 89 DTC 348 (TCC)
The Ontario Medical Association, which was a voluntary association promoting and protecting the interests of medical doctors in Canada, was not a...
Administrative Policy
5 May 2017 External T.I. 2016-0681161E5 - Deductibility of annual membership dues
An Association collectively negotiates conditions of employment (e.g., salaries, benefits, hours of work) for its members with the Employer, but...
1 April 2014 External T.I. 2013-0513781E5 - Trade union dues
An employee association (the" Association") is a company-wide organization that collectively negotiates employment agreements covering...
Paragraph 8(1)(j) - Motor vehicle and aircraft costs
Administrative Policy
10 September 1990 T.I. (Tax Window, Prelim. No. 1, p. 17, ¶1009)
Where an employee begins a drive between home and the employer's place of business and during the course of that drive is contacted by a cellular...
Paragraph 8(1)(m) - Employee’s registered pension plan contributions
Cases
The Queen v. Kurisko, 88 DTC 6434, [1988] 2 CTC 254 (FCTD), aff'd 90 DTC 6376 (FCA)
6% of a federally-appointed judge's salary was required, by virtue of s. 29.1 of the Judges Act, to be withheld and contributed to the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Other Legislation/Constitution - Charter (Constitution Act, 1982) - Subsection 15(1) | 52 | |
| Tax Topics - Income Tax Act - Section 5 - Subsection 5(1) | 79 |
The Queen v. Hoffman, 85 DTC 5508, [1985] 2 CTC 347 (FCTD)
U.S. social security contributions made by a U.S. citizen who was a Canadian resident employee were not deductible under s. 8(1)(l) or (m).
Administrative Policy
13 June 1991 T.I. (Tax Window, No. 4, p. 30, ¶1305)
If an employer's excess contributions to a health and welfare trust are transferred to a pension plan, the transferred amount is neither an...
19 April 1990 T.I. (September 1990 Access Letter, ¶1407)
Discussion of situation where individual receives tax-free long-term disability payments from an insurance company and as part of the same...
Paragraph 8(1)(m.2) - Employee RCA contributions
Administrative Policy
21 February 2018 External T.I. 2017-0702061E5 - RCA contributions and taxable inc earned in Canada
A Canadian professional sports team has established an RCA for the benefit of an athlete employee under which the athlete and the team are each...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 115 - Subsection 115(1) - Paragraph 115(1)(a) - Subparagraph 115(1)(a)(i) | s. 6(1)(a)(ii) exclusion for employer RCA contributions was effectively allocated between Cdn and US employment income of an athlete | 241 |
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) - Subparagraph 6(1)(a)(ii) | s. 6(1)(a)(i) exclusion applied first before s. 4 allocation of income between Canada and U.S. | 151 |
Articles
"Employee Contributions to Unregistered Pension Plans Are Now Permitted", Taxation of Executive Compensation and Retirement, October 1990, p. 342.
Paragraph 8(1)(n) - Salary reimbursement
Administrative Policy
19 December 2016 External T.I. 2016-0643191E5 F - Deferred Salary Leave Plan (DSLP)
In the course of a comprehensive discussion of the deferred salary leave plan (“DSLP”) rules in Reg. 6801(a), CRA provided an example of an...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 5 - Subsection 5(1) | salary advance arrangement results in recognition when advances made rather than when earned | 125 |
| Tax Topics - Income Tax Regulations - Regulation 6801 - Paragraph 6801(a) | comprehensive discussion, including: seasonal workers cannot participate; and DSLP can be married with a salary advance arrangement | 462 |
26 April 2016 Internal T.I. 2015-0623571I7 - one-time salary transition payment
CRA considered that an advance to an employee is current s. 5 income to him or her even if the advance is required to be repaid if the future...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 5 - Subsection 5(1) | advance to employee is current s. 5 income | 239 |
| Tax Topics - Income Tax Act - Section 80.4 - Subsection 80.4(1) | employee advance not a “loan” | 123 |
16 March 2015 External T.I. 2014-0524371E5 F - Assessment beyond normal reassessment period
An individual after being assessed for taxable benefits for certain years was subsequently required by his employer to reimburse the employer for...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4.2) | s. 152(4.2) not applicable if amount was not erroneous at time of return filing | 106 |
S1-F2-C3 - Scholarships, Research Grants and Other Education Assistance
After noting that education-related expenses paid by an employer are considered employment income (at paras. 3.11-3.12), CRA stated:
3.13 Where a...
13 June 2012 Internal T.I. 2012-0448961I7 F - Paiements en trop faits par un employeur
An employee was on extended sick leave but nonetheless received remuneration from the payroll service, which was not informed of the leave. On the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 80.4 - Subsection 80.4(1) | grant of extended period for employee to repay overpayment was not a s. 80.4 loan | 101 |
4 November 2010 Internal T.I. 2010-0358441I7 F - Indien, avance de salaire
An Indian living on a reserve and performing a portion of his duties of employment on a reserve takes an unpaid leave of absence that is funded by...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Other Legislation/Constitution - Federal - Indian Act - Section 87 | salary advance cannot be exempt | 151 |
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(3) - Paragraph 6(3)(a) | salary advance is taxable under s. 6(3) | 75 |
| Tax Topics - Income Tax Act - Section 111 - Subsection 111(8) - Non-Capital Loss | s. 8(1)(n) deduction could generate NCL | 34 |
15 March 2010 Internal T.I. 2009-0352731I7 F - Remboursement de rémunération
Following her leave under a deferred salary leave plan, the employee began an unpaid leave of absence in order to take another job. Is she...
29 May 2008 External T.I. 2007-0262591E5 F - Remboursement de sommes versées par erreur
After disability payments to the taxpayer, under the policy taken out by the employer with an insurer, were suspended, then retroactively...
17 July 2007 External T.I. 2007-0237811E5 F - Régime à traitement différé
An employee takes a leave of six months under a deferred salary leave plan, but then resigns after returning to work, and is contractually...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 6801 - Paragraph 6801(a) - Subparagraph 6801(1)(a)(v) | requirement to return to work for the period of leave | 115 |
Employee did not perform duties
When an employee repays you, in the same or a later year, for salary or wages received when the employee did not perform his or her duties, the...
Clerical or administrative errors
We will not consider an amount to be salary, wages, or an advance in the year the employee received it if the employee is overpaid because of an...
Articles
Christina Medland, Jennifer Sandford, "Tax Treatment of Share-Based Compensation", Taxation of Executive Compensation and Retirement, September 2005, p. 583.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Salary Deferral Arrangement | 0 | |
| Tax Topics - Income Tax Act - Section 7 - Subsection 7(1) - Paragraph 7(1)(a) | 0 |
Paragraph 8(1)(o)
Administrative Policy
23 April 2021 External T.I. 2020-0872371E5 - Sabbatical leave plan - Application of SDA rules
After finding that a sabbatical leave plan did not satisfy the requirements of Reg. 6801(a) as a deferred salary leave plan (for multiple reasons...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 6801 - Paragraph 6801(a) | offside sabbatical leave plan given length and timing of the sabbatical leave and the notional employer contributions | 236 |
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(11) | consequences of a sabbatical leave plan being offside the SDA rules | 275 |
| Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(n.2) | s. 12(1)(n.2) inclusion to employer when employee forfeits entitlement to employer notional contribution to off-side sabbatical leave plan (which had generated s. 20(1)(oo) deduction) | 179 |
Paragraph 8(1)(p) - Musical instrument costs
See Also
Belkin v. The Queen, 2006 DTC 2016, 2005 TCC 785 (Informal Procedure)
The taxpayer (a professor of music) claimed capital cost allowance under s. 8(1)(p) for the capital cost of a Macintosh computer he used to...
Administrative Policy
S4-F14-C1 - Artists and Writers
1.49 Paragraph 8(1)(p) permits a deduction for musical instrument costs. It is available to a taxpayer who is:
- employed in the year as a...
Paragraph 8(1)(q) - Artists’ employment expenses
Administrative Policy
S4-F14-C1 - Artists and Writers
Example 5 (showing that an employed musician may be better off deducting his expenses of travelling to performances under s. 8(1)(h) rather than...
20 August 1992 T.I. 922074 (April 1993 Access Letter, p. 131, ¶C5-191; Tax Window, No. 23, p. 21, ¶2158)
Film editors, film directors, sound editors, directors of photography, art directors and costume directors would not qualify unless they belong to...
Paragraph 8(1)(s)
Administrative Policy
14 March 2013 External T.I. 2012-0472361E5 F - Fournitures/outils - guides de pêche
Employed fishing outfitters and guides provide materials, such as salmon flies or filament to repair fishing lines, to clients, to ensure the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(i) - Subparagraph 8(1)(i)(iii) | implicit requirement to provide “supplies” (e.g., potentially materials provided to clients) can be sufficient | 231 |
Subsection 8(2) - General limitation
See Also
Jamieson v. The Queen, 2013 DTC 1067 [at 367], 2013 TCC 52 (Informal Procedure)
The taxpayer was trained as a lawyer, but worked as a vice president of one corporation and as the corporate secretary of several affiliated...
Kilbride v. The Queen, 2007 DTC 1718, 2007 TCC 663
The taxpayer, who performed functions similar to that of a CFO for a family-owned company and also dealt with other managerial functions when his...
Bushfield v. The Queen, 95 DTC 851 (TCC)
The taxpayer was unsuccessful in deducting expenses incurred by him in seeking election as an Ottawa Board of Education Trustee.
Administrative Policy
S3-F4-C1 - General Discussion of Capital Cost Allowance
No terminal loss
1.101 A terminal loss cannot be claimed in the case of depreciable property for which CCA was claimed in computing income from an...
17 August 1992 T.I. (Tax Window, No. 23, p. 20, ¶2137)
An employee may not deduct home telephone expenses even where she is required to be available at home to respond to calls during off-duty hours.
18 October 1990 T.I. (Tax Window, Prelim. No. 1, p. 16, ¶1019)
The exclusion in s. 6(1)(a) will not apply to employer reimbursements of payments by an employee for counselling services in respect of his...
79 C.R. - Q.39
Since the compensation of an individual executor is income from an office, he is only entitled to expenses specifically allowed in the Act.
Subsection 8(4) - Meals
Cases
Healy v. The Queen, 79 DTC 5060, [1979] CTC 44 (FCA)
In 1973 the appellant was required to work approximately 2/3 of his time at two race tracks located in Metropolitan Toronto, and 1/3 of his time...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Statutory Interpretation - Interpretation Act - Subsection 33(2) | 33 |
Administrative Policy
5 October 2018 APFF Roundtable Q. 8, 2018-0768791C6 F - Frais de repas
By virtue of the combined operation of s. 8(4) and s. 67.1(1), the deduction for when a commissioned employee takes a client out to a restaurant...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 67.1 - Subsection 67.1(1) | s. 67.1(1) applies to client portion of restaurant tab even where s. 8(4) applies to employee | 65 |
Subsection 8(5) - Dues not deductible
Administrative Policy
26 November 2013 External T.I. 2013-0492411E5 - Union Dues
Employees have a pension plan ("EE plan") that is fully funded by their Union. The Union plans to collect a special union dues levy from the...
11 July 2006 External T.I. 2006-0182451E5 F - Indemnité versée par un syndicat
In order to encourage members to participate in union activities on their day off, the union compensates them during their attendance at union...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 3 - Paragraph 3(a) | payments by union to members to attend union conventions on their days off not taxable | 118 |
28 December 1995 Internal T.I. 9529347 - UNION OWNING SHARES
Before noting that the use of surplus operating funds by a union to acquire shares of a business corporation might result in the loss of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(k) | 35 |
2 May 1995 External T.I. 9506405 - UNION DUES-WEEKLY LEVY-FUNDS FOR LAW SUIT
A $5 dollar per week levy on all members of a union in order to fund a law suit would not qualify as being in respect of ordinary operating...
Subsection 8(13) - Work space in home
Administrative Policy
25 November 2021 CTF Roundtable Q. 9, 2021-0911851C6 - Work-Space-In-The-Home Expenses
The questioner posited that employers are responsible for determining if the conditions of employment entitle the employee to deduct...
Home office expenses for employees Date modified: 2020-12-15
Temporary “flat rate method” for computing s. 8(13) deduction in 2020
New temporary flat rate method
The new temporary flat rate method .....
28 March 2019 External T.I. 2019-0799241E5 F - Dépenses d'emploi (employé qui n'est pas à commission)
In Section 3.2 (3rd paragraph) of 5 October 2018 APFF Roundtable Q. 16, 2018-0768871C6 F, CRA indicated that the home office expenses of an...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(i) - Subparagraph 8(1)(i)(ii) | property taxes and insurance expenses of home office do not qualify | 131 |
27 October 2014 External T.I. 2012-0471391E5 F - Entreposage d'inventaire à domicile
A commissioned employee carries out his principal duties at his home where he has a home office as well as being required by his employer to have...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(12) | separate samples storage room part of home office | 92 |
30 October 2013 External T.I. 2013-0500831E5 F - Frais de bureau à domicile
After noting that “Form T2200 must generally be completed by an employer where an individual, under his or her employment contract, is required...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose | to deduct applicable home expenses, individual shareholder must charge rent to corporation using home office | 44 |
| Tax Topics - Income Tax Act - Section 45 - Subsection 45(1) - Paragraph 45(1)(c) | incidental rental use of home does not result in part disposition | 143 |
7 October 2011 Roundtable, 2011-0411891C6 F - Dépenses- EPSP - négociant en vente
A corporation carries on a personal services business (PSB). Is it possible for the employee to personally deduct, from the employee’s...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(p) - Subparagraph 18(1)(p)(iii) | s. 18(1)(p)(iii) deduction limited to commission income | 182 |
11 July 1995 External T.I. 9508235 - WORK SPACE DEDUCTIBLE AS SUPPLIES
"Equipment storage space in the home does not meet the requirements of subsection 8(13) of the Act for work space in the home for deduction...
15 June 1992 Memorandum 921443 (December 1992 Access Letter, p. 7, ¶C5-180)
An employee is not entitled to claim a deduction under s. 8(13) unless he has also met the conditions set out in s. 8(1)(f), or (i) and s. 8(10).
Paragraph 8(13)(a)
Articles
Jiani Qian, "COVID-19 and Employees' Home Office Expenses", Canadian Tax Focus, Vol. 10, No. 2, May 2020, p.2
Requirement of employee to incur expenses can be formalized subsequently (p. 2)
Home office expenses may be deductible to an employee under either...
Subparagraph 8(13)(a)(i)
See Also
Glen v. The Queen, 2003 DTC 2109, 2003 TCC 807 (Informal Procedure)
The taxpayer used an office in his condominium in preparing for lectures as a part-time university lecturer and in speaking to students by...
Administrative Policy
18 June 2007 Internal T.I. 2007-0231861I7 F - Principale place d'affaires
Regarding the application of s. 8(13)(a)(i) to home office expenses incurred by Quebec real estate agents under a contract of service, the...
3 December 1992 Memorandum (Tax Window, No. 27, p. 20, ¶2335)
Salespersons who do not spend the majority of their time working in their home office will not be entitled to deduct the restricted expenses.
The...
Subparagraph 8(13)(a)(ii)
See Also
Landry v. The Queen, 2007 TCC 383 (Informal Procedure)
In finding that the home office expenses of a school superintendant were deductible, Webb J stated (at para. 30):
The Appellant also testified,...
Administrative Policy
10 December 2013 External T.I. 2013-0481171E5 - Home Office Expenses
After noting that "to meet" means for "(two or more people) [to] come into each other's company" and "that some informal Tax Court of Canada...
Commentary
An individual is denied all deductions in computing his or her income from an office or employment, except as provided by section 8: s. 8(2).
S....