Income Tax Act

Marginal note:Residing in prescribed zone

• 110.7 (1) Where, throughout a period (in this section referred to as the “qualifying period”) of not less than 6 consecutive months beginning or ending in a taxation year, a taxpayer who is an individual has resided in one or more particular areas each of which is a prescribed northern zone or prescribed intermediate zone for the year and files for the year a claim in prescribed form, there may be deducted in computing the taxpayer’s taxable income for the year

  • (a) the total of all amounts each of which is the amount, in respect of a particular period during the taxation year, determined by the formula

    A × B

    where

    A

    is the specified percentage for the particular area in which the taxpayer resided during the particular period, and

    B

    is the total trip costs to the taxpayer in respect of trips that begin during the particular period; and

  • (b) the lesser of

    • (i) 20% of the taxpayer’s income for the year, and

    • (ii) the total of all amounts each of which is the product obtained by multiplying the specified percentage for a particular area for the year in which the taxpayer so resided by the total of

      • (A) $11.00 multiplied by the number of days in the year included in the qualifying period in which the taxpayer resided in the particular area, and

      • (B) $11.00 multiplied by the number of days in the year included in that portion of the qualifying period throughout which the taxpayer maintained and resided in a self-contained domestic establishment in the particular area (except any day included in computing a deduction claimed under this paragraph by another person who resided on that day in the establishment).

• Marginal note:Specified percentage

  (2) For the purpose of subsection 110.7(1), the specified percentage for a particular area for a taxation year is

  • (a) where the area is a prescribed northern zone for the year, 100%; and

  • (b) where the area is a prescribed intermediate zone for the year, 50%.

• Marginal note:Restriction

  (3) The total of all amounts determined under paragraph (1)(a) for all taxpayers in a taxation year in respect of an individual shall not be in respect of more than two trips made by the individual that begin in the year (other than trips to obtain medical services that are not available in the locality in which the taxpayer resided).

• Marginal note:Additional restrictions

  (3.1) For the purpose of paragraph (1)(a), an amount may only be included in the amount determined for B for a particular area for a taxation year if

  • (a) the amount is not otherwise deducted in computing the income for any taxation year of any individual (except by an employer under section 9 if it is included in an employee’s income);

  • (b) the amount is not included in determining an amount deducted under subsection 118.2(1) for any taxation year;

  • (c) the amount is in respect of trips made by the taxpayer or an eligible family member of the taxpayer that begin during the part of the year in which the taxpayer resided in the particular area; and

  • (d) neither the taxpayer nor an eligible family member of the taxpayer is at any time entitled to a reimbursement or any form of assistance (other than a reimbursement or assistance included in computing the income of the taxpayer or the eligible family member) in respect of trips to which paragraph (c) applies.

• Marginal note:Additional restriction

  (3.2) If all amounts determined under paragraph 7304(2)(a) of the Income Tax Regulations are nil in respect of trips (beginning in the taxation year) made by an individual, the total of all amounts determined for B in paragraph (1)(a) in the taxation year for all taxpayers in respect of the individual must not exceed the standard amount for the individual for the taxation year.

• Marginal note:Deemed standard amount

  (3.3) If an employer-provided travel benefit was claimed by a taxpayer in respect of an individual in respect of the taxation year, the standard amount for the individual is deemed to be nil for the taxation year.

• Marginal note:Board and lodging allowances, etc.

  (4) The amount determined under subparagraph (1)(b)(ii) for a particular area for a taxpayer for a taxation year shall not exceed the amount by which the amount otherwise determined under that subparagraph for the particular area for the year exceeds the value of, or an allowance in respect of expenses incurred by the taxpayer for, the taxpayer’s board and lodging in the particular area (other than at a work site described in paragraph 67.1(2)(e)) that

  • (a) would, but for subparagraph 6(6)(a)(i), be included in computing the taxpayer’s income for the year; and

  • (b) can reasonably be considered to be attributable to that portion of the qualifying period that is in the year and during which the taxpayer maintained a self-contained domestic establishment as the taxpayer’s principal place of residence in an area other than a prescribed northern zone or a prescribed intermediate zone for the year.

• Marginal note:Idem

  (5) Where on any day an individual resides in more than one particular area referred to in subsection 110.7(1), for the purpose of that subsection, the individual shall be deemed to reside in only one such area on that day.

• Marginal note:Definitions

  (6) The following definitions apply in this section.

  eligible family member

  eligible family member of a taxpayer, at any time, means a member of the taxpayer’s household who is at that time

  • (a) the taxpayer’s spouse or common-law partner;

  • (b) a child of the taxpayer (including a child of the taxpayer’s spouse or common-law partner) under the age of 18; or

  • (c) another individual who is

    • (i) related to the taxpayer,

    • (ii) wholly dependent for support on the taxpayer, the taxpayer’s spouse or common-law partner, or both of them, and

    • (iii) except in the case of a parent or grandparent of the taxpayer, so dependent by reason of mental or physical infirmity. (membre de la famille admissible)

  employer-provided travel benefits

  employer-provided travel benefits, to a taxpayer in respect of a trip made by the taxpayer or their eligible family member, means the total amount of

  • (a) the value of travel assistance, if any, provided to the taxpayer in respect of the taxpayer’s employment in respect of travel expenses for the trip; and

  • (b) the amount, if any, received by the taxpayer in respect of the taxpayer’s employment in respect of travel expenses for the trip. (avantages relatifs aux voyages tirés de l’emploi)

  standard amount

  standard amount, for an individual for a taxation year and subject to subsection (3.3), means $1,200. (montant forfaitaire)

  trip cost

  trip cost has the meaning prescribed by regulation. (frais de voyage)