5-902680
Dear Sirs:
Re: Application of Paragraph 67.1(2)(e)
This will reply to your letter of September 18, 1990, concerning a request for a technical interpretation of paragraph 67.1(2)(e) with respect to meal allowances given to employees at out of town job location sites. We apologize for the delay in our response.
You have concluded that, in your hypothetical situation, each out of town job location site is a particular location of the corporation and because each employee at a location is provided with the daily meal allowance the requirements of paragraph 67.1(2)(e) are met.
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