Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Principal Issues: Whether a daily or weekly pass, including a limited round trip pass, would qualify for the transit pass credit?
Position: No.
Reasons: The draft legislation indicates that an "eligible public transit pass" must provide the individual with the right to use public commuter transit services of a qualified Canadian transit organization on an unlimited number of occasions and on any day on which the public commuter transit services are offered during an uninterrupted period of at least 28 days.
October 20, 2006
XXXXXXXXXX
Dear XXXXXXXXXX:
Thank you for your correspondence received on September 9, 2006, concerning the 2006 Federal Budget proposal to provide a tax credit for public transit passes.
On August 31, 2006, the Honourable James M. Flaherty, Minister of Finance, released the legislative proposals to implement some of the remaining 2006 Federal Budget measures, including the public transit pass tax credit. The draft legislation indicates that an "eligible public transit pass" must provide the individual with the right to use public commuter transit services of a qualified Canadian transit organization on an unlimited number of occasions and on any day on which the public commuter transit services are offered during an uninterrupted period of at least 28 days. This definition means that those who purchase daily or weekly passes, including the 10-trip pass to use Go Transit, would not be eligible for the tax credit.
The legislative proposals were released in draft form so that taxpayers would have an opportunity to consider and comment before they are introduced in Parliament. I assure you that Minister Flaherty and Finance officials are aware of the concerns expressed on this issue.
Thank you again for having taken the time to write.
Sincerely,
The Honourable Carol Skelton, P.C., M.P.
Randy Hewlett
613-957-2049
September 27, 2006
2006-020649
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