Words and Phrases - "tool"
26 May 2023 External T.I. 2023-0962521E5 - Employment Expenses of a Pilot
CRA considers that pilots are not entitled to the deduction under s. 8(1)(s) for tools for the cost to them of aviation headsets (which are worn so as to prevent hearing loss and to facilitate communications with Air Traffic Control). It considered that such headsets come within the exclusion in s. 8(6.1)(d), from what otherwise would qualify as an eligible “tool,” for an “electronic communication device” and also considered that the headsets did not come within its understanding of the ordinary meaning of "tool," namely, an item that is “designed to create a physical change in something or be used as an instrument of measurement or manipulation.”
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(g) | s. 8(1)(g) deduction not available to pilot who returns to home city at the end of the day | 134 |
| Tax Topics - Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(h) | ss. 8(1)(h), (4) and (10) requirements could be met for meal expenses of pilot | 87 |
| Tax Topics - Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(s) | aviation headset is not a tool | 123 |
| Tax Topics - Income Tax Act - Section 8 - Subsection 8(4) | pilot potentially could deduct meal expenses pursuant to s. 8(1)(h) in connection with daily flying from and to the home city, provided that 12-hour requirement met | 76 |
26 May 2023 External T.I. 2023-0962521E5 - Employment Expenses of a Pilot
Was a pilot entitled to deduct from such employee’s employment income the cost of an aviation headset (which was worn so as to prevent hearing loss and facilitate communications with Air Traffic Control) that such individual was required to purchase? CRA stated:
Aviation headsets would not be considered tools. … IT-422, [para. 2] … provides that in order for an asset to be a tool, it must be designed to create a physical change in something or be used as an instrument of measurement or manipulation. … In addition, paragraph 8(6.1)(d) of the Act specifically excludes electronic communication devices as eligible tools. Therefore, the cost of an aviation headset would not be deductible under paragraph 8(1)(s), or any other provision … .
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(g) | s. 8(1)(g) deduction not available to pilot who returns to home city at the end of the day | 134 |
| Tax Topics - Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(h) | ss. 8(1)(h), (4) and (10) requirements could be met for meal expenses of pilot | 87 |
| Tax Topics - Income Tax Act - Section 8 - Subsection 8(6.1) - Paragraph 8(6.1)(d) | aviation headsets were electronic communication devices | 109 |
| Tax Topics - Income Tax Act - Section 8 - Subsection 8(4) | pilot potentially could deduct meal expenses pursuant to s. 8(1)(h) in connection with daily flying from and to the home city, provided that 12-hour requirement met | 76 |
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 success of the fishing trip. The collective agreement is silent on whether the employees must incur these expenses. The employees receive remuneration, regardless of whether the client is fishing, and they are reimbursed for equipment expenses up to specified limits. After discussion the potential deduction under s. 8(1)(i)(iii) (as to which the materials might qualify as “supplies”), CRA stated:
Since there is no definition of the term "tradesperson" in the Act, this term should be interpreted in its ordinary meaning and it is our view that fishing guides could be considered as tradespeople.
… [I]t appears that the property described in your letter is not tools. [Per IT-422, para. 2] in order for an asset to be a tool it must be designed to create a physical change in something or to be used as an instrument of measurement or manipulation. Examples are hammers, saws, squares, screwdrivers and hand-held power tools. Therefore, no amount could be deductible by fishing guides by virtue of paragraph 8(1)(s).
| 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 |