Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues: For purposes of the standby charge benefits calculation, is the use by an employee of an emergency vehicle for travelling between the employee's home and usual workplace considered personal use or is the use "in connection with or in the course of the taxpayer's office or employment" where the employee is required by the terms of the employee's employment contract to so use the emergency vehicle.
Position: It continues to be our view that travel between an employee's home and usual workplace is personal use.
Reasons: This matter was reviewed as recently as September, 1999, at which time our Assistant Commissioner confirmed the above position.
January 12, 2000
Burnaby-Fraser Tax Services Office HEADQUARTERS Mr. Paul Shrimpton Jacques E. Grisé Team Leader, 442-07 957-2059 993035
Automobile Standby Charge
This is in reply to your E-mail of November 15, 1999, to Mr. Stacey Townson concerning the use of emergency vehicles by employees to travel between their homes and their usual workplace for purposes of the automobile standby charge calculation in subsection 6(2) of the Income Tax Act (the Act).
We understand from the information provided to us, that the employment contracts require the employees to use the emergency vehicles when travelling between their homes and usual workplace. For purposes of our response, we have assumed that the emergency vehicles are otherwise only used in connection with or in the course of the employees' office or employment. The facts of each particular case would need to be established in the course of an audit.
The employees contend that because they are required by the terms of their employment to use the emergency vehicles when travelling between their homes and their usual workplace, those kilometres are driven "in connection with or in the course of the taxpayer's office or employment". Thus, the description of A in subsection 6(2) of the Act would be zero and there would be no standby charge.
Notwithstanding the Tax Court of Canada decision in the case of James MacMillan v. The Queen, 97 DTC 3336, and the representations made by XXXXXXXXXX, we continue to maintain our position that the use of a vehicle to travel between an employee's home and usual workplace is personal use. In our view, an employee's requirement to have an automobile available at all times does not diminish the benefit received by the employee in being able to travel between home and the work place in an employer-provided vehicle.
For your information a copy of this memorandum will be severed using the Access to Information Act criteria and placed in the Legislation Access Database (LAD) on the Agency's mainframe computer. A severed copy will also be distributed to the commercial tax publishers for inclusion in their databases. The severing process will remove all material that is not subject to disclosure, including information that could disclose the identity of the taxpayer. Should your client request a copy of this memorandum, they can be provided with the LAD version, or they may request a copy severed using the Privacy Act criteria, which does not remove client identity. Requests for this latter version should be made by you to Jackie Page at 613 957-0682. A copy will be sent to you for delivery to the client.
We hope our comments are helpful.
John Oulton
Manager
Business, Property and Employment
Income Section III
Income Tax Rulings Directorate