August 8, 1990
Current Amendments and Regulations Division A.B. Adler 957-2066
Enquiries and Taxpayer Assistance Division
P. McNally Director
Initial Circulation of the 1990 Employment Expenses Tax Guide and Form T777
This is in reply to your memorandum of August 1, 1990, prepared by D. Barabash of your Publications Section, in which you requested that we review the draft guide and form on a priority basis.
We have completed our review of the draft guide and form. We note that, in your fourth item on Page 2 of the guide you take the administrative position that an employee receiving, say, an unreasonably low motor vehicle allowance may choose not to include it in income provided the employee does not claim motor vehicle expenses as deductions in computing employment income. As previously indicated in our July 19, 1990 memorandum item 1, technically, only reasonable motor vehicle allowances may be excluded in computing employment income.
The use of vertical lines on the draft guide was of assistance to us in our review thereof.
Enclosed are photocopies of certain pages of the guide with our editorial comments indicated thereon in red. Enclosed also is your file including a signed copy of form T84.
B. Bryson Acting Director Current Amendments and Regulations Division
Enclosures
c.c. B. Buetow