| 920227 | |
| R.B. Day | |
| (613) 957-2136 | |
| 19(1) |
January 28, 1992
Dear 19(1):
We are writing with respect to our letter of January 15, 1992, and further to our telephone conversation (Day/19(1)} of January 23, 1992, concerning our clarification on the application of paragraph 6(1)(a) of the Income Tax Act (the Act) to the Overnight Dependant Care Plan.
It is the Department's position, generally, that a reimbursement by the employer of child care costs incurred by an employee constitutes a taxable benefit received by that employee. However, we have accepted that where the expense is incurred as a result of a requirement on the part of the employer to have an employee travel out of town on business, a reimbursement of such costs will not be treated as a taxable benefit.
We apologise for any inconvenience caused by the oversight in our letter of January 15, 1992.
Yours truly,
J. Szeszyckifor DirectorBusiness and General DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch