The allowance is in respect of the taxpayer’s participation on the sport’s team (not coach, trainer, etc) The employer is a registered charity or non-profit Allowance is reasonably attributable to the cost to the taxpayer of living away from where he would otherwise live remote workplace allowance (vi) reasonable allowances received by a minister or clergyman in charge of or ministering to a diocese, parish, congregation (vii) reasonable allowances for travel expenses (other than car allowances) received by employee for travelling away from: (a) the municipality where the employer’s establishment is located or where the employee ordinarily reported the metropolitan area where the employer’s establishment was located For business purposes (vii.1) reasonable allowance for vehicle use for work purposes Allowance vs. Reimbursement Defined in Huffman Allowance An allowance is a predetermined sum of paid to enable the recipient to provide for certain kinds of expense the amount is determined in advance, and once paid is at the – complete discretion of the recipient (included in income) Reimbursement Remuneration paid to a person for a sum paid on behalf of the party remunerating (not included in income) Example: in Huffman, the $500 paid to plainclothes officers was a reimbursement for the wear and tear expected on street clothes. The fact that under-cover police officers were only required to submit $400 in receipts was only due to the fact that when they upped the reimbursement amount from max400 to max500, they made a small statutory exemption to allow for less paperwork The Queen v. MacDonald Leading Case on what constitutes an under 6(1)(b) “allowance” Taxpayer was RCMP officer transferred from Regina to Toronto. He received a $700/month housing subsidy following his transfer that was not included on his income. Minister assessed the subsidy to be an allowance. Held: The $700/Month was an allowance Look to the Facts: (1) Arbitrary amount - predetermined sum set without specific reference to any actual expense or cost (2) Allowance will usually be for a specific purpose (3) Allowance is totally within the discretion of the recipient (reimbursements happen the fact and are partially at the discretion of the payer) Special and Remote Worksites 6(6) creates a special exception to the presumptive inclusion of allowances under 6(1)(b).
The allowance is in respect of the taxpayer’s participation on the sport’s team (not coach, trainer, etc) The employer is a registered charity or non-profit Allowance is reasonably attributable to the cost to the taxpayer of living away from where he would otherwise live remote workplace allowance (vi) reasonable allowances received by a minister or clergyman in charge of or ministering to a diocese, parish, congregation (vii) reasonable allowances for travel expenses (other than car allowances) received by employee for travelling away from: (a) the municipality where the employer’s establishment is located or where the employee ordinarily reported the metropolitan area where the employer’s establishment was located For business purposes (vii.1) reasonable allowance for vehicle use for work purposes Allowance vs. Reimbursement Defined in Huffman Allowance An allowance is a predetermined sum of paid to enable the recipient to provide for certain kinds of expense – the amount is determined in advance, and once paid is at the complete discretion of the recipient (included in income) Reimbursement Remuneration paid to a person for a sum paid on behalf of the party remunerating (not included in income) Example: in Huffman, the $500 paid to plainclothes officers was a reimbursement for the wear and tear expected on street clothes. The fact that under-cover police officers were only required to submit $400 in receipts was only due to the fact that when they upped the reimbursement amount from max400 to max500, they made a small statutory exemption to allow for less paperwork The Queen v. MacDonald Leading Case on what constitutes an “allowance” under 6(1)(b) Taxpayer was RCMP officer transferred from Regina to Toronto. He received a $700/month housing subsidy following his transfer that was not included on his income. Minister assessed the subsidy to be an allowance. Held: The $700/Month was an allowance Look to the Facts: (1) Arbitrary amount - predetermined sum set without specific reference to any actual expense or cost (2) Allowance will usually be for a specific purpose (3) Allowance is totally within the discretion of the recipient (reimbursements happen the fact and are partially at the discretion of the payer) Special and Remote Worksites 6(6) creates a special exception to the presumptive inclusion of allowances under 6(1)(b).
Michaux%20-%20LAW%20345%20-%20Final.docx