1 December 2010 External T.I. 2010-0385491E5 F - Postes isolés dans la fonction publique -- summary under Private Health Services Plan

Federal employees working at isolated posts are reimbursed for travel expenses (travel and accommodation) incurred in relation to the medical services obtained where they or their dependants undergo medical or dental treatment at the nearest Canadian location. Are such reimbursements a taxable benefit? After stating that an “arrangement under which an employer reimburses its employees for the cost of medical or hospital care … fall[s] within the definition of PHSP … where the employer is required under the contract of employment to reimburse such expenses incurred by employees or their dependants,” CRA referred to the tests in ss. 118.2(2)(g) and (h) for the expenses to so qualify.