Words and Phrases - "temporary"
28 September 2000 Internal T.I. 2000-0041017 F - ALLOCATION POUR LOGEMENT
The taxpayer, who was assigned to an office outside Quebec but continued to rent an apartment in Quebec, was taxable on an allowance received to cover housing costs.
Regarding the s. 6(6) exception, the Directorate stated:
The purpose of this exception is to recognize that where an employee is required to work on a temporary basis at a work site located a significant distance from the employee's usual place of residence, it would not be reasonable to expect the employee to dispose of the employee’s current residence and move to the new location for a short period of time. In addition, this subsection recognizes that where an employee continues to incur expenses in order to maintain the employee’s principal place of residence without receiving rental income in return, a benefit is not provided if the employer makes available, or reimburses, the expenses incurred in connection with a temporary residence at the particular work location.
It went on to find that it was likely that the employee’s stay at the other location was not “temporary” as its duration was significantly more than two years.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) | allowance to cover increased housing costs was taxable | 113 |
Dupuis v. The Queen, 2009 DTC 1386, 2009 TCC 220 (Informal Procedure)
The taxpayer, who was an education specialist, was retained as a consultant by a Cree community under an employment contract with an initial term of two years (but with the contract being renewed several times). Under the contract, he was provided with, and resided in, a residence on the reserve with his family, although he continued to maintain a separate residence off the reserve as well.
In finding that the taxpayer held a temporary possession at the reserve, and that he was in a location remote from any established community, Tardif, J. noted that the taxpayer had no rights to the premises at which he lodged at the reserve since the location was under the absolute jurisdiction of the Band Council and that the Cree community lacked the quality of an established community.