3 June 2010 External T.I. 2010-0354531E5 - Moving expenses

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 moving expenses are deductible, upon relocation from one province in Canada to another province in Canada, as a result of the taxpayer resuming a position with a previous employer.

Position: Question of fact. In and of itself, the fact that the taxpayer is relocating to resume duties with a former employer after a period of absence would not preclude the relocation from qualifying as an eligible relocation.

Reasons: Definition of eligible relocation in section 248(1).

XXXXXXXXXX
									2010-035453
									Trang Elsey
June 3, 2010

Dear XXXXXXXXXX :

Re: Moving expenses

We are writing in response to your email dated January 15, 2010 requesting our views as to whether moving expenses are deductible, upon relocation from one province in Canada, to another province in Canada as a result of resuming employment with a previous employer.

Written confirmation of the tax implications inherent in particular transactions may only be provided by this Directorate where the transactions are proposed and are the subject matter of an advance income tax ruling submitted in the manner set out in Information Circular 70-6R5, Advance Income Tax Rulings, dated May 17, 2002. This Information Circular and other Canada Revenue Agency ("CRA") publications can be accessed on the Internet at http://www.cra-arc.gc.ca/formspubs/menu-e.html. Where the particular transactions are completed, the inquiry should be addressed to the relevant Tax Services Office. Although we cannot comment on your specific situation, we are prepared to provide the following general comments, which may be of assistance.

Subsection 62(1) of the Income Tax Act (the "Act") allows a taxpayer to deduct, from income, amounts paid by the taxpayer as or on account of moving expenses incurred in respect of an "eligible relocation", as defined in subsection 248(1) of the Act, subject to the limitations in subsection 62(1) of the Act. Among others, one of the requirements to qualify as an "eligible relocation" is that the relocation occurs to enable the taxpayer to carry on a business or to be employed at a location in Canada. There are no restrictions, however, that would preclude a relocation from qualifying as an eligible relocation merely because a taxpayer is relocating to resume duties with a former employer after a period of absence.

For more information regarding what eligible moving expenses a taxpayer is allowed to deduct, including the limitations on the amount of the deduction, please refer to Form T1-M, Moving Expenses Deduction, and IT-173R3 (Consolidated), Moving Expenses.

While we trust that these comments will be of assistance, they are given in accordance with the practice referred to in paragraph 22 of IC 70-6R5 and are not binding on the CRA in respect of any particular situation.

Yours truly,

Randy Hewlett
for Director
Ontario Corporate Tax Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch