To: Enquiries and Taxpayer Assistance Division Mrs. P. McNally Director
Susan Cameron
From: Small Business and General Division J.D. Jones 957-2104
SUBJECT: Claim for Meals on Form TL2
We have attached a letter dated March 17, 1989, from XXXX for your reply as their queries relate to the design of form TL2.
As discussed in our telephone conversation (Cameron/Jones) of May 2, 1989, you will note that the provincial form (TP-66V) used by the Province of Québec allows the taxpayer to deduct any reimbursement received from his employer with respect to meals prior to imposing the 80 percent limitation.
The Department's form, TL2, requires the employee to subject the total cost of meals to the 80 percent limitation found in subsection 67.1(1) of the Act prior to accounting for any reimbursements received from the employer.
In our view, as subsection 67.1(1) of the Act deems the amount paid or payable in respect of the human consumption of food to be 80 percent of the lesser of "the amount actually paid or payable in respect thereof, and an amount in respect thereof that would be reasonable in the circumstances" the total amount deductible between the employee and the employer, where the employer has reimbursed, at least in part, the employee, should be equal to 80 percent of the "total cost" in respect thereof. This result is not achieved based on form TL2 as shown in the example used by XXXX but is achieved using form TP-66V, referred to previously.
It would be appreciated if you would provide this Division with a copy of your reply to the taxpayer. We have attached a copy of our correspondence informing the taxpayer that your Division will be responding to their concerns.
Director General Specialty Rulings Directorate Legislative and Intergovernmental Affairs Branch