Dear Sir:
Re: Housing Cost Differential Allowance
We are replying to your letter dated September 3, 1991, concerning the income inclusion relating to the amount you received from your employer upon relocation to Toronto.
24(1)
You ask that this allowance be excluded from your income since you feel that there was no economic benefit to you because the money was used to purchase your home in Toronto.
It is our position that an allowance given by an employer to an employee in order to aid in the purchase of a home is a taxable benefit to the employee since the purchase of a home is a personal expense and the allowance is given by virtue of an individual's employment with a particular employer. The fact that this relocation was caused by your desire for employment does not alter this position.
We trust our comments have clarified our position in this matter.
Yours truly,
P.D. Fuoco for Director Business and General DivisionRulings Directorate Legislative and Intergovernmental Affairs Branch
c.c. A. RodriguesChief of Public AffairsMississauga D.O.