Docket: 2021-285(IT)I RICHARD T MCCULLOUGH vs. HIS MAJESTY THE KING September 14th, 2022 Mr. McCullough deducted employment expenses (motor vehicle, lodging and meals) for the 2017-2019 taxation years. The expenses related to travel expenses from the taxpayers regular place of employment to a sister company in the US for temporary arrangement. The minister of revenue subsequently reviewed the expenses and denied them on the basis that that taxpayer had two regular places of work. The case specifically hinged on the interpretation of section 8(1).h of the income tax act (Travel Expenses). The position of the taxpayer was that their duties were temporary, not on a full time in nature and his regular place of work was in Ontario. The Tax Court of Canada sided with the taxpayer on the basis that the taxpayer was required to perform his duties away from his regular place of employment working at the sister company (a separate legal entity). This case confirms eligible employment expenses and GST/HST incurred for work performed to a related company are most likely deductible personally despite a formal contact. No cost were awarded.
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