| File No. 5-9810 | |
| J.D. Jones | |
| 957-2104 | |
| 19(1) 24(1) |
March 26, 1990
Dear 19(1)
Re: Accommodation Allowances
This is in reply to your letter of March 23, 1990, wherein you requested our opinion on the income tax implications of allowances paid to
24(1)
You also requested any information that we may have that specifically relates to the tax status of the 24(1).
We advise that it is our view that the accommodation allowances described in 1) and 2) above would be taxable to the recipients by virtue of paragraph 6(1)(b) of the Income Tax Act (the "Act") as the allowance would represent the payment of the 24(1) personal or living expenses.
Concerning a fixed monthly or annual car allowance, it is our view that such an allowance would be taxable to the recipients by virtue of subparagraph 6(1)(b)(x) of the Act as the allowance would not appear to be based solely on the number of kilometres for which the motor vehicle is used in connection with or in the course of their office or employment.
We also advise that clause 6(1)(b)(i)(A) of the Act exempts from the income of an office or employment amount received as travelling or personal or living expense allowances expressly fixed in an Act of the Parliament of Canada.
We trust our comments are of assistance to you.
Yours truly,
for DirectorBusiness and General DivisionSpecialty Rulings DirectorateLegislative and Intergovernmental Affairs Branch