Principal Issues: What is the taxable status of any benefit that may be enjoyed by employees of a group home in respect of board and lodging, where the employees are required to work 24-hour shifts each day with 8 days of respite per month. In the situation presented the employees are required to sleep in the home but still maintain their own primary residence
Position: No benefit in respect of lodging but there may be a benefit for the cost of meals.
Reasons: The employees would not be in receipt of any benefit in respect of accommodations since they are required by the employer to stay in the home while on shift and also maintain their own primary residence. If the employer also provides these employees with meals at no cost, a taxable benefit is enjoyed in respect of the additional costs, if any, which may be incurred by the employer to provide those meals.
Randy Hewlett
XXXXXXXXXX 613-957-2049
2005-014481
November 21, 2005
Dear XXXXXXXXXX:
Re: Taxable Benefit - Board and Lodging
We are writing in response to your letter of July 12, 2005, wherein you asked for our opinion on the taxable status of any benefit that may be enjoyed by employees of your group homes in respect of board and lodging. You indicated that the employees are required to work 24-hour shifts each day with 8 days of respite per month. When on shift they are required to sleep in the home but still maintain their own primary residence.
Paragraph 6(1)(a) of the Income Tax Act includes "in computing the income of a taxpayer for a taxation year as income from an office or employment ... the value of board, lodging and other benefits of any kind whatever received or enjoyed by the taxpayer in the year in respect of, in the course of, or by virtue of an office or employment". In our view, the employees described above would not be in receipt of any benefit in respect of accommodations since they are required by the employer to stay in the home while on shift and also maintain their own primary residence. If the employer also provides these employees with meals at no cost, however, we are of the view that a taxable benefit is enjoyed in respect of the additional costs, if any, which may be incurred by the employer to provide those meals.
We trust our comments will be of assistance to you. Should you have any further questions please feel free to contact the undersigned at the telephone number indicated above.
Yours truly,
Randy Hewlett
for Director
Business and Partnerships Division
Income Tax Rulings Directorate
Policy and Planning Branch