We are writing in reply to your letter of March 6, 1991, wherein you requested our opinion as to whether or not the decision of the Federal Court of Appeal in the Queen v Huffman, 90 DTC 6405, would alter the conclusions reached in our previous letter to you dated February 15, 1990.
Our Comments
It is our view that the decision in this case would not alter the conclusions set out in our previous letter. The Huffman case was decided on its own particular finding of fact and would only have application in factual situations virtually identical with the Huffman decision. In view of the foregoing it is our opinion that the annual clothing reimbursement is a taxable benefit to the employees in receipt of the reimbursement, as discussed in our letter of February 15, 1990.
We trust that these comments are of assistance to you.
Yours truly,
for DirectorBusiness and General DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch