Principal Issues: 1. Types of activities which could qualify as eligible volunteer firefighter services.
Position: 1. Question of fact but could qualify.
Reasons: 1. The Legislation
XXXXXXXXXX 2011-043192 Robert Dubis
February 6, 2012
Dear XXXXXXXXXX :
We are replying to your e-mail of December 21, 2011 asking for information regarding the types of activities that could qualify for the new Volunteer Firefighters Tax Credit (VFTC). You asked if time spent on repair and maintenance of firefighting vehicles and equipment or time spent travelling to training sessions which are not available locally qualify as eligible volunteer firefighting services.
To qualify for the VFTC, individuals must be a volunteer firefighter in the year and complete a minimum of 200 hours of eligible volunteer firefighter services with one or more fire departments in the year.
Eligible volunteer firefighter services give consideration to all services that are provided to a fire department in the capacity as a volunteer firefighter but those services must consist primarily of the following ("primary services"):
- responding to and being on call for firefighting and related emergency calls as a firefighter;
- attending meetings held by the fire department; and
- participating in required training related to the prevention or suppression of fire.
Time incurred to provide other services to a fire department in the capacity of a volunteer firefighter could also qualify as eligible volunteer firefighter services. These could include time spent repairing and maintaining vehicles and equipment used by the fire department (provided these services are not also provided in an individual capacity other than as a volunteer) and time spent travelling to training sessions related to the prevention or suppression of fire which are not available locally.
For the purpose of completing the minimum 200 hours of eligible volunteer firefighter services, the number of hours devoted to the primary services described above must exceed the number of hours devoted to other services for a particular fire department.
Individuals should rely on their fire department to determine the number of hours of eligible volunteer firefighter services that have been completed in the year. A written certification from a fire chief or delegated official within the fire department may be requested by the Canada Revenue Agency to verify claims for the VFTC.
If a volunteer firefighter receives payment from a government, municipality, or other public authority for carrying out volunteer firefighter duties and chooses to claim the income exemption shown in box 87 of the T4 slip, they cannot claim the VFTC.
We trust that the information provided is helpful.
Yours truly,
Sharmini Ratnasingham
Assistant Director
for Director
Financial Industries Section
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch