Principal Issues: 1) Is travel from a special work site to an employee's principal place of residence considered business or personal?
2) Where an employee is working at a special work site under subsection 6(6), is travel from the temporary place of residence (e.g., hotel) to the special work site considered business or personal?
Position: 1) Personal and non-taxable.
2) Personal and taxable.
Reasons: 1) Personal, however, the benefit will be excluded from income pursuant to subparagraph 6(6)(b)(i) of the Act.
2) It is well established tax policy that traveling between an employee's home (in this case, the employee's temporary place of residence, the hotel) and an employer's business to which an employee reports regularly is personal in nature. The benefit derived from the use of an employer-provided motor vehicle in respect of such travel will give rise to a taxable benefit under section 6 of the Act. This benefit will not be excluded from income pursuant to subparagraph 6(6)(b)(i) of the Act.
XXXXXXXXXX 2008-029108
Renee Sigouin
December 9, 2008