29 May 2003 Ministerial Correspondence 2003-0016004 - EMPLOYMENT EXPENSES TEACHER'S SUPPLIES

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.

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CCRA.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ADRC.

Principal Issues: Can a teacher deduct claim a deduction for the cost of supplies used in the classroom?

Position: Where the requirement of subparagraph 8(1)(i)(iii) have been met, the teacher will be entitled to a deduction under the Act. Must be able to show that there is an express or implied requirement to provide the supplies.

Reasons: Subparagraph 8(1)(i)(iii) of the Act provides a deduction in computing income from employment for the cost of supplies consumed directly in the performance of the duties of employment when the employee is required to provide and pay for such supplies.

Signed on May 29, 2003

XXXXXXXXXX

Dear XXXXXXXXXX:

The Honourable Elinor Caplan, Minister of National Revenue, has asked me to reply to your email addressed to the Right Honourable Jean Chrétien, Prime Minister of Canada, concerning the deductibility of certain expenses incurred by teachers to purchase supplies for use in their classrooms. The Office of the Prime Minister forwarded a copy of your email to Minister Caplan on April 28, 2003.

The Income Tax Act allows for a deduction in computing income from employment for the cost of supplies if they were consumed directly in performing the duties of employment, if the employee is required by the contract of employment to provide and pay for such supplies, and if the employee has not been reimbursed and is not entitled to be reimbursed for them. In addition, the employee must have a completed copy of Form T2200, Declaration of Conditions of Employment, signed by his or her employer certifying that the conditions for claiming the deduction were met in the year. You may wish to refer to Interpretation Bulletin IT-352R2, Employee's Expenses, Including Work Space in Home Expenses, which contains more information concerning this deduction. The bulletin is available on the CCRA Web site on the Internet at www.ccra.gc.ca/formspubs/

Generally, an employee can only claim the deduction for supplies if the terms of a written contract require the employee to provide and pay for the supplies. However, as indicated in paragraph 1 of the bulletin, this requirement may have been met if it is understood by both the employer and the employee that the employee was to make such payments and that the payments were, in fact, necessary under the circumstances to fulfill the duties of the employment. Accordingly, whether a teacher is entitled to deduct the cost of supplies depends on whether there is an express or implied requirement for the teacher to provide and pay for the supplies and whether the employer has certified that the employee qualifies for the deduction. Such a determination is dependent on the particular facts of each situation.

I trust that these comments will be helpful.

Bill McCloskey
Assistant Commissioner
Policy and Legislation Branch
Canada Customs and Revenue Agency

K. Power
957-8968
2003-001600
May 6, 2003

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