The taxpayer works at a worksite located in prescribed zone. In accordance with the contract of employment, the taxpayer returns to the taxpayer’s principal residence outside the zone every 35 days for a period of 8 days including travel. Does the qualifying period referred to in s. 110.7(1)(b)(ii) apply to all the days stated in the contract of employment or only the accumulation of the 35-day periods? CRA responded:
[T]emporary absences from the place of residence in the prescribed northern or intermediate zone may constitute an interruption in the continuity of the period of residence. However, those temporary absences will not constitute a break in the continuity of the period of residence if they are of short duration and if they are not frequent. …
[I]n the situation you described, an individual who resides in a prescribed northern or intermediate zone for a period of at least six months and who has a 35-day work cycle in the said zone followed by an 8-day leave in his other residence at XXXXXXXXXX would be entitled to the deduction provided for in section 110.7.