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Make sure it is in the contract.

October 16, 2013 at 10:02 AM

EMPLOYEE EXPENSES: Not Deductible?

                         In a July 9, 2013 Tax Court of Canada case, a group home counselor took residents of the group home shopping, to medical appointments, and to recreational activities as part of his employment duties.  The employee argued that it was an implicit term of his contract that he incurs expenses for the use of his own personal vehicle and, therefore, the amounts should be deductible on his personal tax return.

 

Taxpayer loses

The taxpayer’s manager noted that many employees do not use their own vehicle for transporting residents and instead take a taxi or public transportation.

 

Because the employee was not required under his contract of employment to use his vehicle, the Court disallowed the expenses.

 

Consideration Item:  This may apply to a wide range of employees, including those who have received T2200s from their employers.  A T2200 (Declaration of Conditions of Employment) is the form signed by employers that allow employees to deduct certain employment expenses from his or her income.