K.B. Harding (613) 957-2129
November 6, 1987
Dear Ms. Bagshaw:
This is in reply to your letter of September 21, 1987 concerning the treatment for taxation purposes of the reimbursements for costs of trusts established to comply with the Conflict of Interest and Post Employment Code for Public Office Holders (Code).
You have indicated that the above Code makes public office holders responsible for any income tax adjustment that may result from the reimbursement of trust costs and you have questioned whether the Minister must issue a T4A for these reimbursements and whether' the public office holders can deduct such costs as expenses for earning income from employment.
We have reviewed a copy of the Code and are of the opinion that any employee covered by that Code who is reimbursed for costs of a trust in accordance with paragraph 8 of the Schedule to the Code is not regarded as having received a taxable benefit for taxation purposes., Accordingly, there should be no requirement to issue a T4 slip for such reimbursements and the public holder is not permitted a deduction in computing either his income from office or employment or property for such reimbursed costs.
We trust this is satisfactory for your purposes.
Yours truly,
for Director Reorganizations sind Non-Resident Division Specialty Rulings Directorate Legislative and Intergovernmental Affairs Branch