| 5-910001 |
Dear Sirs:
Re: Application of Paragraph 67.1(2)(e)
This will reply to your letters of April 10 and August 15, 1990 concerning a request for a technical interpretation of paragraph 67.1(2)(e) with respect to board and lodging allowances given to employees at special work sites.
As a general rule, it is the Departments' position that allowances (especially non-accountable ones) and reimbursements paid to employees who purchase the food themselves are not eligible for the exception provided in paragraph 67.1(2)(e). This exception is only available where the employer provides the food or is the one who makes the arrangements for the food to be made available to the employees. However, the Department may be prepared to look through the transaction to the ultimate payer if extenuating circumstances exist, such as where the location of the place of business or a lack of catering facilities prevent the employer from directly providing the food or making arrangements for the food to be made available.
With respect to special work sites, it is our position that, to the extent that the food is available generally to all employees working at a particular place of business of the employer, the exception provided under paragraph 67.1(2)(e) should apply whether or not the work location meets the "special work site" definition for other purposes of the Act.
We trust these comments will be helpful.
Yours truly,
for DirectorBusiness and General DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch