| July 17, 1989 | |
| To: Halifax District Office | From: Head Office |
| Specialty Rulings | |
| John R. Miller | Directorate |
| Audit Review | R.B. Day |
| (613) 957-2136 |
Subject: Subsection 18(12) Work Space In Home
We are writing in reply to your memorandum of March 6, 1989, wherein you requested our views regarding the application of this subsection as it relates to fishermen and the elimination of a previously allowed deduction for a portion of household expenses, where a portion of the house or basement was used to store or repair fishing gear.
Our Comments
With respect to your first question, we agree with your conclusion that, as a result of the enactment of subsection 18(12), fishermen will not be allowed residence expenses for storing and repairing nets unless they fulfil the requirements of that subsection.
In our view, a legislative amendment would be required to support the pre-1988 practice with respect to a fisherman's workplace in the home. Accordingly, we wrote Current Amendments Division to obtain their comments. That Division saw the problem as one resulting from the policy of regarding the vessel as being, in all cases, the principal place of business and wrote to Audit Directorate to question that policy. The reply from Audit Directorate confirms that a determination will be required in every case, using criteria similar to those used in respect of any other kind of business.
We enclose copies of the above-referred correspondence for your further information and suggest that you contact Audit Applications division if further detail is required regarding the new policy.
We apologize for the delay in replying you your enquiry.
for DirectorSmall Business and General DivisionSpecialty Rulings DirectorateLegislative and IntergovernmentalAffairs Branch