Principal Issues: Why XXXXXXXXXX program users are not eligible for the transit pass credit.
Position: Does not meet definition of public commuter transit services.
Reasons: Definition under 118.02(1).
April 16, 2010
XXXXXXXXXX
Dear XXXXXXXXXX :
XXXXXXXXXX , forwarded to my predecessor, the Honourable Jean-Pierre Blackburn, a copy of your correspondence regarding the public transit pass credit. In particular, you asked why XXXXXXXXXX program users are not eligible for the transit pass credit that users of the XXXXXXXXXX services can claim. I apologize for the delay in replying.
XXXXXXXXXX You feel that this expense should qualify for the public transit pass credit.
The public transit pass credit is calculated based on the cost of an eligible public transit pass or of an eligible electronic card attributable to the use of public commuter transit services. The expression "public commuter transit services" is defined under
subsection 118.02(1) of the Income Tax Act and means services offered to the general public, ordinarily for a period of at least five days per week, of transporting individuals, from a place in Canada to another place in Canada, by means of bus, ferry, subway, train or tram, and in respect of which it can reasonably be expected that those individuals would return daily to the place of their departure. Transportation services offered in a commuter van or car would not be considered to be "by means of bus, ferry, subway, train or tram" and would therefore not qualify for the credit.
Questions about public commuter transit services offered in the carpool and vanpool programs have arisen before and have been brought to the attention of the Department of Finance Canada. Making legislative changes to expand the eligibility rules for the credit falls under the responsibility of that department.
I trust that the information I have provided is helpful.
Yours sincerely,
Keith Ashfield
Minister of National Revenue
Andrea Boyle
(613) 957-8971
2010-035920