In the context of a general discussion of monthly amounts received by residents from an organization which were submitted to be intended to cover expenses and costs incurred at an overseas location, such as accommodation, food, restaurants (although CRA regarded the amounts as more likely being salary), CRA stated:
A representation allowance, in the context of subparagraph 6(1)(b)(iii), is an allowance paid to an employee who is required to perform duties in a foreign country in order to alleviate the inconvenience of relocation, to assist in adjusting to different living conditions and, where applicable, to an increased cost of living. An amount can generally be considered a special allowance when it is paid to an employee who is transferred or posted abroad and thus incurs additional expenses.