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Travelling on the job?

October 09, 2012 at 10:15 AM

PER DIEM MEAL ALLOWANCE

                        In a March 28, 2012 Technical Interpretation, CRA noted that an employer-provided meal allowance will not be taxable where the following conditions are met:

•    the allowance is a reasonable amount;

•    the allowance is received for travelling away from the municipality and the metropolitan area where the employer’s establishment, at which the employee ordinarily worked or to which the employee ordinarily reported is located; and

•    the travelling is done in the performance of the duties of an office or employment.

CRA’s current administrative policy provides that in some circumstances, employer-provided travel (including meal) allowances paid in respect of travel within a “municipality” or “metropolitan area” can be excluded from income.

CRA notes that, as a general rule, an employer can use the overtime meal allowance of $17 as a reasonable amount per meal.

Tax Tips & Traps 2012