The employer, which sells the products of manufacturers, employs salaried sales representatives, who meet with various customers within their territory between 15 and 45 times per week; perform most of their work at the customer's premises; do not have a place of employment with the employer; leave their home in the morning to go directly to their first client; at the end of the day they leave the last client to return to their home; and are under no obligation to report to the employer. The employer requires the representatives to maintain an office at their residence to be used for administrative work. They receive a motor vehicle allowance based on the actual mileage driven.
In finding that the allowance likely was not taxable under s. 6(1)(b), CRA stated:
[T]he trips made by the representative with his motor vehicle to go from the employee’s residence to the first client place of business and from the last client place of business to the individual’s residence could be considered to be trips made in the performance of the duties of his office or employment, as long as such client places of business do not constitute a regular place of work to the individual. … [I]t is unlikely that the clients' places of business would constitute a regular place of work of the representative.