The taxpayer, who earned commission income as a wealth advisor employed by a broker, incurred fees to a headhunter firm (of $13,989 and $24,105 in her 2015 and 2016 taxation years) to identify an associate who could work for her in canvassing clients and sharing her duties. The taxpayer’s performance was measured in part based on her increasing the assets managed by her. The Form T2200 signed by her employer indicated that she was responsible for expenses including of business development. CRA allowed most of her other expenses claimed under s. 8(1)(f), such as for travel, but not the headhunter fees.
In rejecting the position of the Crown that “nowhere was it written that the appellant was required to incur the recruitment expenses” (para. 21), St-Hilaire J stated (at paras. 30, 31, TaxInterpretations translation):
[T]he employer's answer to question 1 on Form T2200 indicated that the appellant was required to pay the expenses incurred to perform the duties related to her work … .
[A]ccording to my interpretation of subparagraph 8(1)(f)(i), where the employer confirms that the employee is required to pay her expenses, and the employee demonstrates that she incurred her expenses to earn her employment income, the condition is satisfied.