Given the great distance between the residence of new employees hired by the employer for a 24-month period and the employer's offices, they work from home. Although their contract of employment designates one of the employer's offices as their place of work, they are only required to attend there for a single three-day visit for training and team building activities.
CRA indicated that given that the employer’s office was not the employees’ regular place of employment, their travel between home and that office quailed as travel in the course of their employment. This signified that reimbursement for their travel expenses (e.g., for bus and hotels) was not a taxable benefit under s. 6(1)(a). Furthermore, for those who travelled using their own vehicles, a reasonable per-kilometre allowance payable by their employer would not be included in their income pursuant to s. 6(1)(b) by virtue of the exception in s. 6(1)(b)(vii.1), again because such travel would be considered to be in the course of their employment. Regarding allowances for other travel expenses (i.e., regarding meals), the Directorate stated:
[P]aragraph 6(6)(b) allows an amount received in respect of transportation costs between the taxpayer's principal place of residence and the special work site to be disregarded in computing the taxpayer's income from an office or employment for the period referred to above during which the taxpayer received a reasonable board and lodging allowance from the employer.
One of the requirements for subsection 6(6) to apply is that the work performed by the employee at the special worksite be of a temporary nature. Although the Act does not define "temporary nature", we are of the view on the facts submitted that the work to be performed by the employees at the work site designated in the contract of employment in the situation submitted will be temporary in nature. Consequently, amounts paid by the employer for the travel of certain employees in the situation submitted will not have to be included in computing their income from an office or employment pursuant to subsection 6(6) if all other conditions of that subsection are otherwise met.