Tax wiki
s. 8
PART I — Income Tax · DIVISION B — Computation of Income · SUBDIVISION A — Income or Loss from an Office or Employment · Deductions
Deductions allowed
Annotation in draft, not yet reviewed · Text current to 2026-06-21 · section last amended 2026-06-18
Section 8 contains the only deductions an employee or office-holder may claim against income from an office or employment. Subsection 8(2) closes the list: except as section 8 permits, nothing may be deducted, so an employee starts from gross pay and must fit every outlay into a specific paragraph of subsection 8(1). Those paragraphs cover legal costs to collect pay, the clergy residence deduction, railway and transport workers' meals and lodging, commissioned salespeople's expenses, travel and motor vehicle costs, union and professional dues, office rent, assistants and supplies, vehicle and aircraft interest and capital cost allowance, pension and retirement compensation contributions, repayments of salary and disability top-ups, forfeited deferred amounts, employee profit sharing plan amounts, musicians' instruments, artists' expenses, tools for apprentice mechanics and tradespeople, and, since 2022, the labour mobility deduction for construction workers. The other subsections limit and support those deductions: the twelve-hour meal rule, the dues exclusions, the tool definitions and cost rule, the aircraft limit, the employer's certificate (Form T2200 or T1223), the GST/HST rebate rule, forfeited employee shares, the work-space-in-home rule, and the labour mobility definitions. This page sets out the text and its history since 1917, the definitions and the case law on each paragraph, the CRA's administrative positions, the compliance and planning points, and the Quebec and treaty parallels. It reflects the 18 June 2026 amendment, which raised the labour mobility cap to $10,000 and cut the distance test to 120 km for 2026 and later years.
Pending or proposed amendment
No pending or proposed amendment to section 8 was found. The latest amendment, S.C. 2026, c. 22, s. 2 (Spring Economic Update 2026 Implementation Act, Bill C-30, royal assent 18 June 2026), is in force: it raised the cap in subparagraph 8(1)(t)(i) from $4,000 to $10,000 and reduced the distance in subparagraph 8(14)(c)(v) from 150 km to 120 km for the 2026 and later taxation years, and section 5 of the same Act added paragraph 117.1(2)(b.1), which indexes the $10,000 for taxation years beginning after 2026. The CRA's Guide T4044 (2025 edition) and its Budget 2022 labour mobility page still show $4,000 and 150 km, which are correct for 2022 to 2025 only. Checked: the Justice Laws list of amendments not in force, and the Department of Finance's Legislative Proposals Relating to the Income Tax Act and the Income Tax Regulations (Technical Amendments) of 23 July 2026, which within Subdivision A touch only section 6.
Current text
In computing a taxpayer’s income for a taxation year from an office or employment, there may be deducted such of the following amounts as are wholly applicable to that source or such part of the following amounts as may reasonably be regarded as applicable thereto
[Repealed, 2001, c. 17, s. 3(1)]
Legal expenses of employee
(b)amounts paid by the taxpayer in the year as or on account of legal expenses incurred by the taxpayer to collect, or to establish a right to, an amount owed to the taxpayer that, if received by the taxpayer, would be required by this Subdivision to be included in computing the taxpayer’s income;
Clergy residence
(c)where, in the year, the taxpayer
is a member of the clergy or of a religious order or a regular minister of a religious denomination, and
is
in charge of a diocese, parish or congregation,
ministering to a diocese, parish or congregation, or
engaged exclusively in full-time administrative service by appointment of a religious order or religious denomination,
the amount, not exceeding the taxpayer’s remuneration for the year from the office or employment, equal to
the total of all amounts including amounts in respect of utilities, included in computing the taxpayer’s income for the year under section 6 in respect of the residence or other living accommodation occupied by the taxpayer in the course of, or because of, the taxpayer’s office or employment as such a member or minister so in charge of or ministering to a diocese, parish or congregation, or so engaged in such administrative service, or
rent and utilities paid by the taxpayer for the taxpayer’s principal place of residence (or other principal living accommodation), ordinarily occupied during the year by the taxpayer, or the fair rental value of such a residence (or other living accommodation), including utilities, owned by the taxpayer or the taxpayer’s spouse or common-law partner, not exceeding the lesser of
the greater of
$1,000 multiplied by the number of months (to a maximum of ten) in the year, during which the taxpayer is a person described in subparagraphs (i) and (ii), and
one-third of the taxpayer’s remuneration for the year from the office or employment, and
the amount, if any, by which
the rent paid or the fair rental value of the residence or living accommodation, including utilities
exceeds
the total of all amounts each of which is an amount deducted, in connection with the same accommodation or residence, in computing an individual’s income for the year from an office or employment or from a business (other than an amount deducted under this paragraph by the taxpayer), to the extent that the amount can reasonably be considered to relate to the period, or a portion of the period, in respect of which an amount is claimed by the taxpayer under this paragraph;
Teachers’ exchange fund contribution
(d)a single amount, in respect of all employments of the taxpayer as a teacher, not exceeding $250 paid by the taxpayer in the year to a fund established by the Canadian Education Association for the benefit of teachers from Commonwealth countries present in Canada under a teachers’ exchange arrangement;
Expenses of railway employees
(e)amounts disbursed by the taxpayer in the year for meals and lodging while employed by a railway company
away from the taxpayer’s ordinary place of residence as a relieving telegrapher or station agent or on maintenance and repair work, or
away from the municipality and the metropolitan area, if there is one, where the taxpayer’s home terminal was located, and at a location from which, by reason of distance from the place where the taxpayer maintained a self-contained domestic establishment in which the taxpayer resided and actually supported a spouse or common-law partner or a person dependent on the taxpayer for support and connected with the taxpayer by blood relationship, marriage or common-law partnership or adoption, the taxpayer could not reasonably be expected to return daily to that place,
to the extent that the taxpayer has not been reimbursed and is not entitled to be reimbursed in respect thereof;
Sales expenses
(f)where the taxpayer was employed in the year in connection with the selling of property or negotiating of contracts for the taxpayer’s employer, and
under the contract of employment was required to pay the taxpayer’s own expenses,
was ordinarily required to carry on the duties of the employment away from the employer’s place of business,
was remunerated in whole or part by commissions or other similar amounts fixed by reference to the volume of the sales made or the contracts negotiated, and
was not in receipt of an allowance for travel expenses in respect of the taxation year that was, by virtue of subparagraph 6(1)(b)(v), not included in computing the taxpayer’s income,
amounts expended by the taxpayer in the year for the purpose of earning the income from the employment (not exceeding the commissions or other similar amounts referred to in subparagraph 8(1)(f)(iii) and received by the taxpayer in the year) to the extent that those amounts were not
outlays, losses or replacements of capital or payments on account of capital, except as described in paragraph 8(1)(j),
outlays or expenses that would, by virtue of paragraph 18(1)(l), not be deductible in computing the taxpayer’s income for the year if the employment were a business carried on by the taxpayer, or
amounts the payment of which reduced the amount that would otherwise be included in computing the taxpayer’s income for the year because of paragraph 6(1)(e);
Transport employee’s expenses
(g)where the taxpayer was an employee of a person whose principal business was passenger, goods, or passenger and goods transport and the duties of the employment required the taxpayer, regularly,
to travel, away from the municipality where the employer’s establishment to which the taxpayer reported for work was located and away from the metropolitan area, if there is one, where it was located, on vehicles used by the employer to transport the goods or passengers, and
while so away from that municipality and metropolitan area, to make disbursements for meals and lodging,
amounts so disbursed by the taxpayer in the year to the extent that the taxpayer has not been reimbursed and is not entitled to be reimbursed in respect thereof;
Travel expenses
(h)where the taxpayer, in the year,
was ordinarily required to carry on the duties of the office or employment away from the employer’s place of business or in different places, and
was required under the contract of employment to pay the travel expenses incurred by the taxpayer in the performance of the duties of the office or employment,
amounts expended by the taxpayer in the year (other than motor vehicle expenses) for travelling in the course of the office or employment, except where the taxpayer
received an allowance for travel expenses that was, because of subparagraph 6(1)(b)(v), 6(1)(b)(vi) or 6(1)(b)(vii), not included in computing the taxpayer’s income for the year, or
claims a deduction for the year under paragraph 8(1)(e), 8(1)(f) or 8(1)(g);
Motor vehicle travel expenses
(h.1)where the taxpayer, in the year,
was ordinarily required to carry on the duties of the office or employment away from the employer’s place of business or in different places, and
was required under the contract of employment to pay motor vehicle expenses incurred in the performance of the duties of the office or employment,
amounts expended by the taxpayer in the year in respect of motor vehicle expenses incurred for travelling in the course of the office or employment, except where the taxpayer
received an allowance for motor vehicle expenses that was, because of paragraph 6(1)(b), not included in computing the taxpayer’s income for the year, or
claims a deduction for the year under paragraph 8(1)(f);
Dues and other expenses of performing duties
(i)an amount paid by the taxpayer in the year, or on behalf of the taxpayer in the year if the amount paid on behalf of the taxpayer is required to be included in the taxpayer’s income for the year, as
annual professional membership dues the payment of which was necessary to maintain a professional status recognized by statute,
office rent, or salary to an assistant or substitute, the payment of which by the officer or employee was required by the contract of employment,
the cost of supplies that were consumed directly in the performance of the duties of the office or employment and that the officer or employee was required by the contract of employment to supply and pay for,
annual dues to maintain membership in a trade union as defined
by section 3 of the Canada Labour Code, or
in any provincial statute providing for the investigation, conciliation or settlement of industrial disputes,
or to maintain membership in an association of public servants the primary object of which is to promote the improvement of the members’ conditions of employment or work,
annual dues that were, pursuant to the provisions of a collective agreement, retained by the taxpayer’s employer from the taxpayer’s remuneration and paid to a trade union or association designated in subparagraph 8(1)(i)(iv) of which the taxpayer was not a member,
dues to a parity or advisory committee or similar body, the payment of which was required under the laws of a province in respect of the employment for the year, and
dues to a professions board, the payment of which was required under the laws of a province,
to the extent that the taxpayer has not been reimbursed, and is not entitled to be reimbursed in respect thereof;
Motor vehicle and aircraft costs
(j)where a deduction may be made under paragraph 8(1)(f), 8(1)(h) or 8(1)(h.1) in computing the taxpayer’s income from an office or employment for a taxation year,
any interest paid by the taxpayer in the year on borrowed money used for the purpose of acquiring, or on an amount payable for the acquisition of, property that is
a motor vehicle that is used, or
an aircraft that is required for use
in the performance of the duties of the taxpayer’s office or employment, and
such part, if any, of the capital cost to the taxpayer of
a motor vehicle that is used, or
an aircraft that is required for use
in the performance of the duties of the office or employment as is allowed by regulation;
C.P.P. contributions and U.I.A. premiums
(l.1)any amount payable by the taxpayer in the year
as an employer’s premium under the employment Insurance Act, or
as an employer’s contribution under the Canada Pension Plan or under a provincial pension plan as defined in section 3 of the Canada Pension Plan,
in respect of salary, wages or other remuneration, including gratuities, paid to an individual employed by the taxpayer as an assistant or substitute to perform the duties of the taxpayer’s office or employment if an amount is deductible by the taxpayer for the year under subparagraph 8(1)(i)(ii) in respect of that individual;
Quebec parental insurance plan
(l.2)an amount payable by the taxpayer in the year as an employer’s premium under the Act respecting parental insurance, R.S.Q., c. A-29.011 in respect of salary, wages or other remuneration, including gratuities, paid to an individual employed by the taxpayer as an assistant or substitute to perform the duties of the taxpayer’s office or employment if an amount is deductible by the taxpayer for the year under subparagraph (i)(ii) in respect of that individual;
Employee’s registered pension plan contributions
(m)the amount in respect of contributions to registered pension plans that, by reason of subsection 147.2(4), is deductible in computing the taxpayer’s income for the year;
Employee RCA contributions
(m.2)an amount contributed by the taxpayer in the year to a pension plan in respect of services rendered by the taxpayer where the plan is a prescribed plan established by an enactment of Canada or a province or where
the plan is a retirement compensation arrangement,
the amount was paid to a custodian (within the meaning assigned by the definition retirement compensation arrangement in subsection 248(1)) of the arrangement who is resident in Canada, and
either
the taxpayer was required, by the terms of the taxpayer’s office or employment, to contribute the amount, and the total of the amounts contributed to the plan in the year by the taxpayer does not exceed the total of the amount contributed to the plan in the year by any other person in respect of the taxpayer, or
the plan is a pension plan the registration of which under this Act was revoked (other than a plan the registration of which was revoked as of the effective date of its registration) and the amount was contributed in accordance with the terms of the plan as last registered;
[Repealed, 1994, c. 21, s. 4(2)]
Salary reimbursement
(n)an amount paid by or on behalf of the taxpayer in the year pursuant to an arrangement (other than an arrangement described in subparagraph (b)(ii) of the definition top-up disability payment in subsection 6(17)) under which the taxpayer is required to reimburse any amount paid to the taxpayer for a period throughout which the taxpayer did not perform the duties of the office or employment, to the extent that
the amount so paid to the taxpayer for the period was included in computing the taxpayer’s income from an office or employment, and
the total of amounts so reimbursed does not exceed the total of amounts received by the taxpayer for the period throughout which the taxpayer did not perform the duties of the office or employment;
Reimbursement of disability payments
(n.1)where,
as a consequence of the receipt of a payment (in this paragraph referred to as the “deferred payment”) from an insurer, a payment (in this paragraph referred to as the “reimbursement payment”) is made by or on behalf of an individual to an employer or former employer of the individual pursuant to an arrangement described in subparagraph (b)(ii) of the definition top-up disability payment in subsection 6(17), and
the reimbursement payment is made
in the year, other than within the first 60 days of the year if the deferred payment was received in the immediately preceding taxation year, or
within 60 days after the end of the year, if the deferred payment was received in the year,
an amount equal to the lesser of
the amount included under paragraph 6(1)(f) in respect of the deferred payment in computing the individual’s income for any taxation year, and
the amount of the reimbursement payment;
Forfeited amounts
(o)where at the end of the year the rights of any person to receive benefits under a salary deferral arrangement in respect of the taxpayer have been extinguished or no person has any further right to receive any amount under the arrangement, the amount, if any, by which the total of all deferred amounts under the arrangement included in computing the taxpayer’s income for the year and preceding taxation years as benefits under paragraph 6(1)(a) exceeds the total of
all such deferred amounts received by any person in that year or preceding taxation years out of or under the arrangement,
all such deferred amounts receivable by any person in subsequent taxation years out of or under the arrangement, and
all amounts deducted under this paragraph in computing the taxpayer’s income for preceding taxation years in respect of deferred amounts under the arrangement;
Idem
(o.1)an amount that is deductible in computing the taxpayer’s income for the year because of subsection 144(9);
Excess EPSP amounts
(o.2)an amount that is an excess EPSP amount (as defined in subsection 207.8(1)) of the taxpayer for the year, other than any portion of the excess EPSP amount for which the taxpayer’s tax for the year under subsection 207.8(2) is waived or cancelled;
Musical instrument costs
(p)where the taxpayer was employed in the year as a musician and as a term of the employment was required to provide a musical instrument for a period in the year, an amount (not exceeding the taxpayer’s income for the year from the employment, computed without reference to this paragraph) equal to the total of
amounts expended by the taxpayer before the end of the year for the maintenance, rental or insurance of the instrument for that period, except to the extent that the amounts are otherwise deducted in computing the taxpayer’s income for any taxation year, and
such part, if any, of the capital cost to the taxpayer of the instrument as is allowed by regulation;
Artists’ employment expenses
(q)where the taxpayer’s income for the year from the office or employment includes income from an artistic activity
that was the creation by the taxpayer of, but did not include the reproduction of, paintings, prints, etchings, drawings, sculptures or similar works of art,
that was the composition by the taxpayer of a dramatic, musical or literary work,
that was the performance by the taxpayer of a dramatic or musical work as an actor, dancer, singer or musician, or
in respect of which the taxpayer was a member of a professional artists’ association that is certified by the Minister of Communications,
amounts paid by the taxpayer before the end of the year in respect of expenses incurred for the purpose of earning the income from those activities to the extent that they were not deductible in computing the taxpayer’s income for a preceding taxation year, but not exceeding a single amount in respect of all such offices and employments of the taxpayer equal to the amount, if any, by which
the lesser of $1,000 and 20% of the total of all amounts each of which is the taxpayer’s income from an office or employment for the year, before deducting any amount under this section, that was income from an artistic activity described in any of subparagraphs 8(1)(q)(i) to 8(1)(q)(iv),
exceeds
the total of all amounts deducted by the taxpayer for the year under paragraph 8(1)(j) or 8(1)(p) in respect of costs or expenses incurred for the purpose of earning the income from such an activity for the year;
Apprentice mechanics’ tool costs
(r)if the taxpayer was an eligible apprentice mechanic at any time after 2001 and before the end of the taxation year, the amount claimed by the taxpayer for the taxation year under this paragraph not exceeding the lesser of
the taxpayer’s income for the taxation year computed without reference to this paragraph, and
the amount determined by the formula
(A - B) + C
where
is the total of all amounts each of which is the cost to the taxpayer of an eligible tool acquired in the taxation year by the taxpayer or, if the taxpayer first becomes employed as an eligible apprentice mechanic in the taxation year, the cost to the taxpayer of an eligible tool acquired by the taxpayer in the last three months of the preceding taxation year,
is the lesser of
the value of A for the taxation year in respect of the taxpayer, and
the greater of
the amount that is the total of the first dollar amount referred to in paragraph (s) and the amount determined for the taxation year for B in subsection 118(10), and
5% of the total of
the total of all amounts each of which is the taxpayer’s income from employment for the taxation year as an eligible apprentice mechanic, computed without reference to this paragraph, and
the amount, if any, by which the amount required by paragraph 56(1)(n.1) to be included in computing the taxpayer’s income for the taxation year exceeds the amount required by paragraph 60(p) to be deducted in computing that income, and
is the amount by which the amount determined under this subparagraph for the preceding taxation year in respect of the taxpayer exceeds the amount deducted under this paragraph for that preceding taxation year by the taxpayer;
Deduction — tradesperson’s tools
(s)if the taxpayer is employed as a tradesperson at any time in the taxation year, the lesser of $1,000 and the amount determined by the formula
A - $1,000
where
is the lesser of
the total of all amounts each of which is the cost of an eligible tool acquired by the taxpayer in the year, and
the total of
the amount that would, if this subsection were read without reference to this paragraph, be the taxpayer’s income for the taxation year from employment as a tradesperson in the taxation year, and
the amount, if any, by which the amount required by paragraph 56(1)(n.1) to be included in computing the taxpayer’s income for the taxation year exceeds the amount required by paragraph 60(p) to be deducted in computing that income; and
Labour mobility deduction
(t)if the taxpayer is an eligible tradesperson for the year, an amount equal to the lesser of
$10,000, and
the total of all amounts each of which is a temporary relocation deduction of the taxpayer for the year in respect of an eligible temporary relocation of the taxpayer.
Terms used in subsection (1) 53
deferred payment defined in the Act paragraph 8(1)(n.1)
Paragraph 8(1)(n.1) calls a payment that an individual receives from an insurer the “deferred payment”. The label is local to the paragraph and works with paragraph (b) of the definition “top-up disability payment” in subsection 6(17) and with the inclusion under paragraph 6(1)(f). Where the individual, as a consequence of receiving the deferred payment, repays the employer under a top-up arrangement, the deduction is the lesser of the paragraph 6(1)(f) inclusion in respect of the deferred payment and the repayment. Paragraph (n.1) was enacted by S.C. 1998, c. 19, s. 69, for arrangements entered into or payments made after 10 August 1994. No CRA or judicial reading was found.
reimbursement payment defined in the Act paragraph 8(1)(n.1)
Also in paragraph 8(1)(n.1): “a payment (in this paragraph referred to as the ‘reimbursement payment’) is made by or on behalf of an individual to an employer or former employer of the individual pursuant to an arrangement described in subparagraph (b)(ii) of the definition top-up disability payment in subsection 6(17)”. The timing rule in subparagraph (n.1)(ii) allocates a reimbursement payment made within the first 60 days of a year to the preceding year where the deferred payment was received in that preceding year. The term pairs with “deferred payment”.
eligible apprentice mechanic defined in the Act subsection 8(6)
Paragraph 8(6)(a): “a taxpayer is an eligible apprentice mechanic in a taxation year if, at any time in the taxation year, the taxpayer (i) is registered in a program established in accordance with the laws of Canada or of a province that leads to designation under those laws as a mechanic licensed to repair self-propelled motorized vehicles, and (ii) is employed as an apprentice mechanic”. Enacted by S.C. 2002, c. 9, s. 21, for tools acquired after 2001; S.C. 2007, c. 2, s. 2, added programs under the laws of Canada. Paragraph 8(6)(c) lets a former apprentice continue to deduct the carried-forward amount in the description of C in subparagraph 8(1)(r)(ii).
eligible tool defined in the Act subsections 8(6) and (6.1)
Section 8 defines the term twice. For paragraph 8(1)(r), paragraph 8(6)(b) makes an eligible tool “a tool (including ancillary equipment)” that is acquired for use in the employment as an eligible apprentice mechanic, has not been used for any purpose before acquisition, “is certified in prescribed form by the taxpayer’s employer to be required to be provided by the taxpayer as a condition of, and for use in,” that employment, and is not an electronic communication device or electronic data processing equipment unless it “can be used only for the purpose of measuring, locating or calculating”. For paragraph 8(1)(s), subsection 8(6.1) applies the same conditions to employment “as a tradesperson” and adds acquisition “on or after May 2, 2006”. Both the electronic-device exclusion and subsection 8(6.1) came from S.C. 2007, c. 2, s. 2. The certification is given on Form T2200, Part C (question 12 for a tradesperson and question 13 for an eligible apprentice mechanic, according to the CRA’s line 22900 page), and is required by these subsections, not by subsection 8(10).
eligible tradesperson defined in the Act subsection 8(14)
Paragraph 8(14)(a): “a taxpayer is an eligible tradesperson for a taxation year if, in the taxation year, the taxpayer has income from employment as a tradesperson or apprentice and performs their duties of employment in construction activities described in subsection 238(1) of the Income Tax Regulations”. Subsection 238(1) of the Regulations provides that “construction activities includes the erection, excavation, installation, alteration, modification, repair, improvement, demolition, destruction, dismantling or removal of all or any part of a building, structure, surface or sub-surface construction, or any similar property.” The definition was enacted with paragraph 8(1)(t) by S.C. 2022, c. 10, s. 2, for 2022 and later years, and has not been amended. “Tradesperson” itself is not defined.
temporary work location defined in the Act subsection 8(14)
Paragraph 8(14)(b): “a temporary work location of a taxpayer is a location in Canada (i) at which the taxpayer performs their duties of employment under a temporary employment contract, and (ii) that is not situated in the locality where the taxpayer is ordinarily employed or carrying on business”. “Locality” and “temporary employment contract” are undefined; Guide T4044 (2025) gives a city as an example of a locality. “Canada” includes the internal waters and territorial sea (Interpretation Act, s. 35(1)). Enacted by S.C. 2022, c. 10, s. 2.
eligible temporary relocation defined in the Act subsection 8(14)
Paragraph 8(14)(c) sets five conditions: the relocation enables the taxpayer to perform duties as an eligible tradesperson at temporary work locations “within the same locality”; before it, the taxpayer ordinarily resided at a residence in Canada; the duties required absence from that residence “for a period of not less than 36 hours”; the taxpayer temporarily resided at lodgings in Canada; and “the distance between the ordinary residence and each temporary work location … is not less than 120 kilometres greater than the distance between each temporary lodging … and each temporary work location”. The distance was 150 km for 2022 to 2025; S.C. 2026, c. 22, s. 2(2) and (3), substituted 120 km for 2026 and later years. The concept differs from “eligible relocation” in subsection 248(1), the moving-expense test of 40 km.
eligible temporary relocation expense defined in the Act subsection 8(14)
Paragraph 8(14)(d): subject to paragraph (e), “a reasonable expense incurred by the taxpayer during the taxation year, the previous taxation year or prior to February 1 of the following taxation year”, for one round trip per relocation between the ordinary residence and the temporary lodging, meals during that trip, and the temporary lodging if the ordinary residence is kept as the principal place of residence and not rented. Paragraph (e) excludes expenses deducted elsewhere, expenses deductible under paragraph 8(1)(t) for the preceding year, and expenses for which a reimbursement, allowance or other assistance is available, other than an amount included in income and not deductible. Enacted by S.C. 2022, c. 10, s. 2.
temporary relocation deduction defined in the Act subsection 8(14)
Paragraph 8(14)(f): the lesser of the eligible temporary relocation expenses for the year in respect of the relocation and “half of the taxpayer’s total income for the taxation year from employment as an eligible tradesperson at all temporary work locations referred to in subparagraph (c)(i) in respect of the eligible temporary relocation (computed without reference to this section)”. Paragraph 8(1)(t) totals the deductions for all relocations and caps them at $10,000 for 2026 and later years ($4,000 for 2022 to 2025), indexed for taxation years beginning after 2026 under paragraph 117.1(2)(b.1). Enacted by S.C. 2022, c. 10, s. 2.
employer defined in the Act subsection 248(1)
In relation to an officer, “the person from whom the officer receives the officer’s remuneration”; otherwise the ordinary meaning. The employer’s confirmation in prescribed form is a condition under subsections 8(6), (6.1) and (10). None of the three further statutes adds anything.
wholly applicable; may reasonably be regarded as applicable defined in the Act subsection 4(1)
The opening words echo paragraph 4(1)(a): each office or employment is a separate source and mixed-use outlays are apportioned (Bykov v. The King, 2024 TCC 36, para. 47). None of the three further statutes adds anything.
amount; amount owed Act and case law subsection 248(1); Barkley v. Canada, 2021 FCA 5, para. 31
“Money, rights or things expressed in terms of the amount of money”. In paragraph 8(1)(b), “an amount owed” covers only amounts not yet received (Barkley, para. 31) and still requires a debt for services performed (Clément v. The Queen, 2020 TCC 33, paras. 19 to 21). None of the three further statutes adds anything.
legal expenses; to collect, or to establish a right to defined by the courts Fenwick v. Canada, 2008 FCA 370, para. 7
Paragraph 8(1)(b) “has a relatively narrow scope”: collecting unpaid pay or resolving a dispute with the employer over the amount owed (Fenwick); the purpose of the fees governs, not success (Podlesny v. The Queen, 2008 TCC 591, para. 16). None of the three further statutes adds anything.
member of the clergy; religious order; regular minister of a religious denomination defined by the courts Canada v. Lefebvre, 2009 FCA 307, paras. 20 to 26
The status test in subparagraph 8(1)(c)(i), undefined in the Act. The person’s status, held under a legitimate appointment, must have some permanence (Lefebvre, para. 26); lay pastoral agents on terminable mandates do not qualify (para. 49). None of the three further statutes adds anything.
in charge of; ministering to; diocese, parish or congregation defined by the courts Lichtman v. The Queen, 2017 TCC 252, paras. 194 to 199
The function test. “Ministering” is read broadly (McGorman, as characterised in Lichtman, paras. 117 to 119), and the way one ministers depends on the denomination (Austin v. The Queen, 99 DTC 710 (T.C.C.), para. 37), but “congregation”, read with “diocese” and “parish”, requires regularized worship in an institutional setting (Lichtman). None of the three further statutes adds anything.
engaged exclusively in full-time administrative service by appointment defined in the Act clause 8(1)(c)(ii)(C)
Undefined; the CRA reads “administrative service” as management-level policy work, not clerical work (archived IT-141R, paras. 13 to 20). None of the three further statutes adds anything.
remuneration for the year from the office or employment defined by the courts Parker v. The Queen, 2015 TCC 86, paras. 28 and 36 to 37
The ceiling on the clergy deduction and the base of the one-third cap; CPP disability benefits are not included. None of the three further statutes adds anything.
principal place of residence defined in the Act subparagraph 8(1)(c)(iv); clause 8(14)(d)(iii)(A)
Undefined, and distinct from “principal residence” in section 54. None of the three further statutes adds anything.
spouse or common-law partner defined in the Act subsection 248(1)
A common-law partner cohabits with the taxpayer in a conjugal relationship for twelve months or is a parent of the taxpayer’s child; relevant to subparagraphs 8(1)(c)(iv) and (e)(ii). “Spouse” is undefined. None of the three further statutes adds anything.
month Interpretation Act Interpretation Act, R.S.C. 1985, c. I-21, s. 35(1)
“A calendar month”, for the $1,000 a month clergy cap. The Act and the other two statutes add nothing.
person; individual Act and Interpretation Act subsection 248(1); subsection 248(1)
“Person” includes a corporation and legal representatives; “individual means a person other than a corporation”, used for the assistant in paragraphs 8(1)(l.1) and (l.2) and the claimant in subsection 8(13). Subsection 35(1) of the Interpretation Act is overtaken by subsection 248(1); the other two statutes add nothing.
business; employer’s place of business Act and case law subsection 248(1); Martorelli v. The Queen, 2010 TCC 216, para. 18
“Business” excludes “an office or employment”. A construction site is the employer’s place of business if it is in the nature of a permanent establishment of the employer (Martorelli, para. 18, citing Champaigne v. The Queen, 2006 TCC 74, and Dionne v. Canada, 2006 FCA 79, which adopted Champaigne without restating the test). None of the three further statutes adds anything.
Commonwealth Interpretation Act Interpretation Act, s. 35(1)
The countries named in the schedule to that Act, for the teachers’ exchange deduction in paragraph 8(1)(d). The Act and the other two statutes add nothing.
self-contained domestic establishment defined in the Act subsection 248(1)
“A dwelling-house, apartment or other similar place of residence in which place a person as a general rule sleeps and eats”, for subparagraph 8(1)(e)(ii) and subsection 8(13). None of the three further statutes adds anything.
property defined in the Act subsection 248(1)
“Property of any kind whatever”, for “selling of property” in paragraph 8(1)(f) and the vehicle or aircraft in paragraph 8(1)(j). None of the three further statutes adds anything.
required under the contract of employment defined by the courts Barry v. Canada, 2014 FCA 280, paras. 10 to 13
The contract must oblige the employee to pay; a choice is not enough (Barry, para. 10), though a term may be implied where necessary (Verrier, as characterised in Samotus v. The King, 2025 TCC 104, paras. 22 and 24). None of the three further statutes adds anything.
ordinarily required to carry on the duties away from the employer’s place of business or in different places defined by the courts Rousseau v. The Queen, 2006 TCC 552, paras. 20 and 31 to 34
The first condition of paragraphs 8(1)(f), (h) and (h.1) ((f) omits “or in different places”). The CRA reads “ordinarily” as requiring some frequency, read purposively (technical interpretation 2009-0334751E5). None of the three further statutes adds anything.
commissions or other similar amounts Act and case law Tulman v. The Queen, 2014 TCC 140, paras. 41 to 42
Pay must be fixed by reference to the volume of sales or contracts, and the deduction is capped at those amounts received in the year (Rosen v. The King, 2025 TCC 6, paras. 65 to 68). None of the three further statutes adds anything.
for the purpose of earning the income defined by the courts Symes v. Canada, [1993] 4 S.C.R. 695; Perera v. The Queen, 2014 TCC 280, paras. 16 and 22
An objective test of personal versus income-earning purpose: courts “look for objective manifestations of purpose”, and an expense that would have been incurred without the work carries “a strong inference” of personal purpose (Symes, reasons of Iacobucci J., adopting Professor Brooks); everyday clothing is personal (Perera, paras. 22 and 24). None of the three further statutes adds anything.
outlays … or payments on account of capital defined by the courts Gifford v. Canada, 2004 SCC 15, paras. 19 to 26
A client list, and the interest on money borrowed to buy it, were capital; paragraph 8(1)(j) is the only exception (para. 15). None of the three further statutes adds anything.
motor vehicle; motor vehicle expenses defined in the Act subsection 248(1)
“An automotive vehicle designed or adapted to be used on highways and streets”, excluding trolley buses and rail vehicles. “Automobile” and “passenger vehicle” are not used in section 8 but limit claims through paragraph 13(7)(g) and sections 67.2 and 67.3. None of the three further statutes adds anything.
travelling in the course of the office or employment defined by the courts Hogg v. Canada, 2002 FCA 177, paras. 9 to 15
The expense must be incurred while performing the duties; home-to-work travel is personal (Hogg; Brown v. The Queen, 2012 TCC 452, paras. 5 to 12). None of the three further statutes adds anything.
allowance Act and case law paragraph 6(1)(b); Veinot v. The Queen, 2010 TCC 112, paras. 19 to 25
An allowance excluded from income bars paragraphs 8(1)(f), (h) or (h.1); one not based solely on kilometres is unreasonable, taxable, and leaves the deduction open (Veinot). None of the three further statutes adds anything.
meal; twelve hours; municipality and metropolitan area Act and case law Richardson v. The Queen, 2018 TCC 135, para. 17
Meals count under paragraphs 8(1)(f) and (h) only during a required absence of twelve hours from the municipality and metropolitan area of the employer’s establishment; Toronto-area meals failed. None of the three further statutes adds anything.
professional status recognized by statute defined by the courts The Queen v. Swingle, [1978] 1 F.C. 743 (T.D.)
A statute must recognize a status implying special skills or qualifications (Swingle); the CRA adds that membership must be mandatory (Folio S2-F2-C1). None of the three further statutes adds anything.
supplies consumed directly in the performance of the duties case law and CRA Barry v. Canada, 2014 FCA 280, paras. 16 to 17
The contract must require the employee to supply and pay for them; the CRA gives “supplies” a “very restrictive meaning” but accepts cellular minutes and data used up in the duties (technical interpretation 2015-0603631I7). None of the three further statutes adds anything.
trade union; association of public servants defined in the Act Canada Labour Code, R.S.C. 1985, c. L-2, s. 3(1)
“Any organization of employees, or any branch or local thereof, the purposes of which include the regulation of relations between employers and employees”, or a union under a provincial labour statute. None of the three further statutes adds anything.
aircraft defined in the Act paragraph 8(1)(j); subsection 8(9)
Undefined; an aircraft “required for use in the performance of the duties”, subject to the reasonableness limit in subsection 8(9). None of the three further statutes adds anything.
capital cost; as is allowed by regulation Act and Regulations Income Tax Regulations, C.R.C., c. 945, s. 1100(1)
Allowed “for the purposes of paragraphs 8(1)(j) and (p) and 20(1)(a)”, at 30 per cent for Classes 10 and 10.1. None of the three further statutes adds anything.
regulation; prescribed; prescribed form defined in the Act subsection 248(1)
A form authorized by the Minister, or otherwise prescribed by regulation: in practice Form T2200, and Form T1223 for paragraph 8(1)(c). None of the three further statutes adds anything.
salary, wages or other remuneration, including gratuities defined in the Act section 5
The section 5 phrase, used for the assistant’s pay in paragraphs 8(1)(l.1) and (l.2); the defined compound “salary or wages” left section 8 in 2013. None of the three further statutes adds anything.
provincial pension plan defined in the Act Canada Pension Plan, R.S.C. 1985, c. C-8, s. 3(1)
Incorporated by subparagraph 8(1)(l.1)(ii); in practice the Quebec Pension Plan. None of the three further statutes adds anything.
registered pension plan defined in the Act subsection 248(1)
A pension plan (not a pooled plan) registered and not revoked; paragraph 8(1)(m) defers to subsection 147.2(4). Section 5 of the Income Tax Conventions Interpretation Act treats RPP payments as “pension” for treaties only; the other two statutes add nothing.
retirement compensation arrangement; custodian defined in the Act subsection 248(1)
An arrangement under which an employer contributes to a custodian for retirement or termination benefits; paragraph 8(1)(m.2) borrows “custodian” expressly. Section 5 of the Income Tax Conventions Interpretation Act treats RCA payments as “pension” for treaties only; the other two statutes add nothing.
top-up disability payment; insurer defined in the Act subsection 6(17); subsection 248(1)
An employer’s payment following a disability insurer’s insolvency; reimbursement arrangements fall under paragraph 8(1)(n.1), not (n). None of the three further statutes adds anything.
salary deferral arrangement; deferred amount defined in the Act subsection 248(1)
An arrangement one of whose main purposes is to postpone tax on salary or wages; paragraph 8(1)(o) reverses deferred amounts taxed and then forfeited. None of the three further statutes adds anything.
excess EPSP amount defined in the Act subsection 207.8(1)
A specified employee’s EPSP allocation above 20 per cent of employment income, removed from employment income by paragraph 8(1)(o.2) and taxed under Part XI.4. None of the three further statutes adds anything.
tradesperson; apprentice mechanic defined in the Act paragraphs 8(1)(r) and (s); subsections 8(6) and (14)
Both undefined beyond subparagraph 8(6)(a)(ii) and paragraph 8(14)(a). “Province” includes the territories (Interpretation Act, s. 35(1)); the other two statutes add nothing.
Canada; province Interpretation Act Interpretation Act, s. 35(1)
“Canada” includes internal waters and the territorial sea; “province” includes the three territories. Section 5 of the Income Tax Conventions Interpretation Act defines “Canada” for treaties only; the Income Tax Application Rules add nothing.
taxpayer defined in the Act subsection 248(1)
“Taxpayer includes any person whether or not liable to pay tax.” Here it is the officer or employee whose income from the source is computed. Subsection 33(2) of the Interpretation Act (singular includes plural) lets “an office or employment” cover several positions; the other two statutes add nothing.
taxation year; year Act and Interpretation Act subsection 249(1)
For an individual, “a calendar year” (paragraph 249(1)(c)); the bare word “year” means the taxation year by context. Subsection 37(1) of the Interpretation Act is consistent but displaced; the other two statutes add nothing.
office; officer defined in the Act subsection 248(1)
“The position of an individual entitling the individual to a fixed or ascertainable stipend or remuneration”, including a corporation director; “officer means a person holding such an office”. Section 8 applies to office income as to employment income. None of the three further statutes adds anything.
employment; employee Act and case law subsection 248(1); 671122 Ontario Ltd. v. Sagaz Industries Canada Inc., 2001 SCC 59
“The position of an individual in the service of some other person”; “employee includes officer”. Whether a worker is an employee, and so confined to section 8, turns on the Sagaz question, whether the person “is performing them as a person in business on his own account” (para. 47), as applied in Schroeder v. The King, 2024 TCC 56, paras. 23 to 29. Section 3 of the Income Tax Conventions Interpretation Act gives undefined treaty terms their meaning under the Act; the other two statutes add nothing.
General limitation
(2)Except as permitted by this section, no deductions shall be made in computing a taxpayer’s income for a taxation year from an office or employment.
Terms used in subsection (2) 4
taxpayer defined in the Act subsection 248(1)
“Taxpayer includes any person whether or not liable to pay tax.” Here it is the officer or employee whose income from the source is computed. Subsection 33(2) of the Interpretation Act (singular includes plural) lets “an office or employment” cover several positions; the other two statutes add nothing.
taxation year; year Act and Interpretation Act subsection 249(1)
For an individual, “a calendar year” (paragraph 249(1)(c)); the bare word “year” means the taxation year by context. Subsection 37(1) of the Interpretation Act is consistent but displaced; the other two statutes add nothing.
office; officer defined in the Act subsection 248(1)
“The position of an individual entitling the individual to a fixed or ascertainable stipend or remuneration”, including a corporation director; “officer means a person holding such an office”. Section 8 applies to office income as to employment income. None of the three further statutes adds anything.
employment; employee Act and case law subsection 248(1); 671122 Ontario Ltd. v. Sagaz Industries Canada Inc., 2001 SCC 59
“The position of an individual in the service of some other person”; “employee includes officer”. Whether a worker is an employee, and so confined to section 8, turns on the Sagaz question, whether the person “is performing them as a person in business on his own account” (para. 47), as applied in Schroeder v. The King, 2024 TCC 56, paras. 23 to 29. Section 3 of the Income Tax Conventions Interpretation Act gives undefined treaty terms their meaning under the Act; the other two statutes add nothing.
Meals
(4)An amount expended in respect of a meal consumed by a taxpayer who is an officer or employee shall not be included in computing the amount of a deduction under paragraph 8(1)(f) or 8(1)(h) unless the meal was consumed during a period while the taxpayer was required by the taxpayer’s duties to be away, for a period of not less than twelve hours, from the municipality where the employer’s establishment to which the taxpayer ordinarily reported for work was located and away from the metropolitan area, if there is one, where it was located.
Terms used in subsection (4) 5
meal; twelve hours; municipality and metropolitan area Act and case law Richardson v. The Queen, 2018 TCC 135, para. 17
Meals count under paragraphs 8(1)(f) and (h) only during a required absence of twelve hours from the municipality and metropolitan area of the employer’s establishment; Toronto-area meals failed. None of the three further statutes adds anything.
taxpayer defined in the Act subsection 248(1)
“Taxpayer includes any person whether or not liable to pay tax.” Here it is the officer or employee whose income from the source is computed. Subsection 33(2) of the Interpretation Act (singular includes plural) lets “an office or employment” cover several positions; the other two statutes add nothing.
taxation year; year Act and Interpretation Act subsection 249(1)
For an individual, “a calendar year” (paragraph 249(1)(c)); the bare word “year” means the taxation year by context. Subsection 37(1) of the Interpretation Act is consistent but displaced; the other two statutes add nothing.
office; officer defined in the Act subsection 248(1)
“The position of an individual entitling the individual to a fixed or ascertainable stipend or remuneration”, including a corporation director; “officer means a person holding such an office”. Section 8 applies to office income as to employment income. None of the three further statutes adds anything.
employment; employee Act and case law subsection 248(1); 671122 Ontario Ltd. v. Sagaz Industries Canada Inc., 2001 SCC 59
“The position of an individual in the service of some other person”; “employee includes officer”. Whether a worker is an employee, and so confined to section 8, turns on the Sagaz question, whether the person “is performing them as a person in business on his own account” (para. 47), as applied in Schroeder v. The King, 2024 TCC 56, paras. 23 to 29. Section 3 of the Income Tax Conventions Interpretation Act gives undefined treaty terms their meaning under the Act; the other two statutes add nothing.
Dues not deductible
(5)Notwithstanding subparagraphs 8(1)(i)(i), 8(1)(i)(iv), 8(1)(i)(vi) and 8(1)(i)(vii), dues are not deductible under those subparagraphs in computing a taxpayer’s income from an office or employment to the extent that they are, in effect, levied
for or under a superannuation fund or plan;
for or under a fund or plan for annuities, insurance (other than professional or malpractice liability insurance that is necessary to maintain a professional status recognized by statute) or similar benefits; or
for any other purpose not directly related to the ordinary operating expenses of the committee or similar body, association, board or trade union, as the case may be.
Terms used in subsection (5) 6
professional status recognized by statute defined by the courts The Queen v. Swingle, [1978] 1 F.C. 743 (T.D.)
A statute must recognize a status implying special skills or qualifications (Swingle); the CRA adds that membership must be mandatory (Folio S2-F2-C1). None of the three further statutes adds anything.
trade union; association of public servants defined in the Act Canada Labour Code, R.S.C. 1985, c. L-2, s. 3(1)
“Any organization of employees, or any branch or local thereof, the purposes of which include the regulation of relations between employers and employees”, or a union under a provincial labour statute. None of the three further statutes adds anything.
taxpayer defined in the Act subsection 248(1)
“Taxpayer includes any person whether or not liable to pay tax.” Here it is the officer or employee whose income from the source is computed. Subsection 33(2) of the Interpretation Act (singular includes plural) lets “an office or employment” cover several positions; the other two statutes add nothing.
taxation year; year Act and Interpretation Act subsection 249(1)
For an individual, “a calendar year” (paragraph 249(1)(c)); the bare word “year” means the taxation year by context. Subsection 37(1) of the Interpretation Act is consistent but displaced; the other two statutes add nothing.
office; officer defined in the Act subsection 248(1)
“The position of an individual entitling the individual to a fixed or ascertainable stipend or remuneration”, including a corporation director; “officer means a person holding such an office”. Section 8 applies to office income as to employment income. None of the three further statutes adds anything.
employment; employee Act and case law subsection 248(1); 671122 Ontario Ltd. v. Sagaz Industries Canada Inc., 2001 SCC 59
“The position of an individual in the service of some other person”; “employee includes officer”. Whether a worker is an employee, and so confined to section 8, turns on the Sagaz question, whether the person “is performing them as a person in business on his own account” (para. 47), as applied in Schroeder v. The King, 2024 TCC 56, paras. 23 to 29. Section 3 of the Income Tax Conventions Interpretation Act gives undefined treaty terms their meaning under the Act; the other two statutes add nothing.
Apprentice mechanics
(6)For the purpose of paragraph (1)(r),
a taxpayer is an eligible apprentice mechanic in a taxation year if, at any time in the taxation year, the taxpayer
is registered in a program established in accordance with the laws of Canada or of a province that leads to designation under those laws as a mechanic licensed to repair self-propelled motorized vehicles, and
is employed as an apprentice mechanic;
an eligible tool is a tool (including ancillary equipment) that
is acquired by a taxpayer for use in connection with the taxpayer’s employment as an eligible apprentice mechanic,
has not been used for any purpose before it is acquired by the taxpayer,
is certified in prescribed form by the taxpayer’s employer to be required to be provided by the taxpayer as a condition of, and for use in, the taxpayer’s employment as an eligible apprentice mechanic, and
is, unless the device or equipment can be used only for the purpose of measuring, locating or calculating, not an electronic communication device or electronic data processing equipment; and
a taxpayer who, for a taxation year, is not an eligible apprentice mechanic and has an excess amount determined under the description of C in subparagraph (1)(r)(ii) is, for the taxation year, entitled to claim a deduction under that paragraph as if that excess amount were wholly applicable to an employment of the taxpayer.
Terms used in subsection (6) 10
eligible apprentice mechanic defined in the Act subsection 8(6)
Paragraph 8(6)(a): “a taxpayer is an eligible apprentice mechanic in a taxation year if, at any time in the taxation year, the taxpayer (i) is registered in a program established in accordance with the laws of Canada or of a province that leads to designation under those laws as a mechanic licensed to repair self-propelled motorized vehicles, and (ii) is employed as an apprentice mechanic”. Enacted by S.C. 2002, c. 9, s. 21, for tools acquired after 2001; S.C. 2007, c. 2, s. 2, added programs under the laws of Canada. Paragraph 8(6)(c) lets a former apprentice continue to deduct the carried-forward amount in the description of C in subparagraph 8(1)(r)(ii).
eligible tool defined in the Act subsections 8(6) and (6.1)
Section 8 defines the term twice. For paragraph 8(1)(r), paragraph 8(6)(b) makes an eligible tool “a tool (including ancillary equipment)” that is acquired for use in the employment as an eligible apprentice mechanic, has not been used for any purpose before acquisition, “is certified in prescribed form by the taxpayer’s employer to be required to be provided by the taxpayer as a condition of, and for use in,” that employment, and is not an electronic communication device or electronic data processing equipment unless it “can be used only for the purpose of measuring, locating or calculating”. For paragraph 8(1)(s), subsection 8(6.1) applies the same conditions to employment “as a tradesperson” and adds acquisition “on or after May 2, 2006”. Both the electronic-device exclusion and subsection 8(6.1) came from S.C. 2007, c. 2, s. 2. The certification is given on Form T2200, Part C (question 12 for a tradesperson and question 13 for an eligible apprentice mechanic, according to the CRA’s line 22900 page), and is required by these subsections, not by subsection 8(10).
employer defined in the Act subsection 248(1)
In relation to an officer, “the person from whom the officer receives the officer’s remuneration”; otherwise the ordinary meaning. The employer’s confirmation in prescribed form is a condition under subsections 8(6), (6.1) and (10). None of the three further statutes adds anything.
regulation; prescribed; prescribed form defined in the Act subsection 248(1)
A form authorized by the Minister, or otherwise prescribed by regulation: in practice Form T2200, and Form T1223 for paragraph 8(1)(c). None of the three further statutes adds anything.
tradesperson; apprentice mechanic defined in the Act paragraphs 8(1)(r) and (s); subsections 8(6) and (14)
Both undefined beyond subparagraph 8(6)(a)(ii) and paragraph 8(14)(a). “Province” includes the territories (Interpretation Act, s. 35(1)); the other two statutes add nothing.
Canada; province Interpretation Act Interpretation Act, s. 35(1)
“Canada” includes internal waters and the territorial sea; “province” includes the three territories. Section 5 of the Income Tax Conventions Interpretation Act defines “Canada” for treaties only; the Income Tax Application Rules add nothing.
taxpayer defined in the Act subsection 248(1)
“Taxpayer includes any person whether or not liable to pay tax.” Here it is the officer or employee whose income from the source is computed. Subsection 33(2) of the Interpretation Act (singular includes plural) lets “an office or employment” cover several positions; the other two statutes add nothing.
taxation year; year Act and Interpretation Act subsection 249(1)
For an individual, “a calendar year” (paragraph 249(1)(c)); the bare word “year” means the taxation year by context. Subsection 37(1) of the Interpretation Act is consistent but displaced; the other two statutes add nothing.
office; officer defined in the Act subsection 248(1)
“The position of an individual entitling the individual to a fixed or ascertainable stipend or remuneration”, including a corporation director; “officer means a person holding such an office”. Section 8 applies to office income as to employment income. None of the three further statutes adds anything.
employment; employee Act and case law subsection 248(1); 671122 Ontario Ltd. v. Sagaz Industries Canada Inc., 2001 SCC 59
“The position of an individual in the service of some other person”; “employee includes officer”. Whether a worker is an employee, and so confined to section 8, turns on the Sagaz question, whether the person “is performing them as a person in business on his own account” (para. 47), as applied in Schroeder v. The King, 2024 TCC 56, paras. 23 to 29. Section 3 of the Income Tax Conventions Interpretation Act gives undefined treaty terms their meaning under the Act; the other two statutes add nothing.
Eligible tool of tradesperson
(6.1)For the purposes of paragraph (1)(s), an eligible tool of a taxpayer is a tool (including ancillary equipment) that
is acquired by the taxpayer on or after May 2, 2006 for use in connection with the taxpayer’s employment as a tradesperson;
has not been used for any purpose before it is acquired by the taxpayer;
is certified in prescribed form by the taxpayer’s employer to be required to be provided by the taxpayer as a condition of, and for use in, the taxpayer’s employment as a tradesperson; and
is, unless the device or equipment can be used only for the purpose of measuring, locating or calculating, not an electronic communication device or electronic data processing equipment.
Terms used in subsection (6.1) 8
eligible tool defined in the Act subsections 8(6) and (6.1)
Section 8 defines the term twice. For paragraph 8(1)(r), paragraph 8(6)(b) makes an eligible tool “a tool (including ancillary equipment)” that is acquired for use in the employment as an eligible apprentice mechanic, has not been used for any purpose before acquisition, “is certified in prescribed form by the taxpayer’s employer to be required to be provided by the taxpayer as a condition of, and for use in,” that employment, and is not an electronic communication device or electronic data processing equipment unless it “can be used only for the purpose of measuring, locating or calculating”. For paragraph 8(1)(s), subsection 8(6.1) applies the same conditions to employment “as a tradesperson” and adds acquisition “on or after May 2, 2006”. Both the electronic-device exclusion and subsection 8(6.1) came from S.C. 2007, c. 2, s. 2. The certification is given on Form T2200, Part C (question 12 for a tradesperson and question 13 for an eligible apprentice mechanic, according to the CRA’s line 22900 page), and is required by these subsections, not by subsection 8(10).
employer defined in the Act subsection 248(1)
In relation to an officer, “the person from whom the officer receives the officer’s remuneration”; otherwise the ordinary meaning. The employer’s confirmation in prescribed form is a condition under subsections 8(6), (6.1) and (10). None of the three further statutes adds anything.
regulation; prescribed; prescribed form defined in the Act subsection 248(1)
A form authorized by the Minister, or otherwise prescribed by regulation: in practice Form T2200, and Form T1223 for paragraph 8(1)(c). None of the three further statutes adds anything.
tradesperson; apprentice mechanic defined in the Act paragraphs 8(1)(r) and (s); subsections 8(6) and (14)
Both undefined beyond subparagraph 8(6)(a)(ii) and paragraph 8(14)(a). “Province” includes the territories (Interpretation Act, s. 35(1)); the other two statutes add nothing.
taxpayer defined in the Act subsection 248(1)
“Taxpayer includes any person whether or not liable to pay tax.” Here it is the officer or employee whose income from the source is computed. Subsection 33(2) of the Interpretation Act (singular includes plural) lets “an office or employment” cover several positions; the other two statutes add nothing.
taxation year; year Act and Interpretation Act subsection 249(1)
For an individual, “a calendar year” (paragraph 249(1)(c)); the bare word “year” means the taxation year by context. Subsection 37(1) of the Interpretation Act is consistent but displaced; the other two statutes add nothing.
office; officer defined in the Act subsection 248(1)
“The position of an individual entitling the individual to a fixed or ascertainable stipend or remuneration”, including a corporation director; “officer means a person holding such an office”. Section 8 applies to office income as to employment income. None of the three further statutes adds anything.
employment; employee Act and case law subsection 248(1); 671122 Ontario Ltd. v. Sagaz Industries Canada Inc., 2001 SCC 59
“The position of an individual in the service of some other person”; “employee includes officer”. Whether a worker is an employee, and so confined to section 8, turns on the Sagaz question, whether the person “is performing them as a person in business on his own account” (para. 47), as applied in Schroeder v. The King, 2024 TCC 56, paras. 23 to 29. Section 3 of the Income Tax Conventions Interpretation Act gives undefined treaty terms their meaning under the Act; the other two statutes add nothing.
Cost of tool
(7)Except for the purposes of the description of A in subparagraph (1)(r)(ii) and the description of A in paragraph (1)(s), the cost to a taxpayer of an eligible tool the cost of which was included in determining the value of one or both of those descriptions in respect of the taxpayer for a taxation year is the amount determined by the formula
K - (K × L/M)
where
is the cost to the taxpayer of the tool determined without reference to this subsection;
is
if the tool is a tool to which only paragraph (1)(r) applies in the taxation year, the amount that would be determined under subparagraph (1)(r)(ii) in respect of the taxpayer for the taxation year if the value of C in that subparagraph were nil,
if the tool is a tool to which only paragraph (1)(s) applies in the taxation year, the amount determined under that paragraph to be deductible by the taxpayer in the taxation year, or
if the tool is a tool to which both paragraphs (1)(r) and (s) apply in the taxation year, the amount that is the total of
the amount that would be determined under subparagraph (1)(r)(ii) in respect of the taxpayer for the taxation year if the value of C in that subparagraph were nil, and
the amount determined under paragraph (1)(s) to be deductible by the taxpayer in the taxation year; and
is the amount that is
if the tool is a tool to which only paragraph (1)(r) applies in the taxation year, the value of A determined under subparagraph (1)(r)(ii) in respect of the taxpayer for the taxation year,
if the tool is a tool to which only paragraph (1)(s) applies in the taxation year, the amount determined under subparagraph (i) of the description of A in paragraph (1)(s) in respect of the taxpayer for the taxation year, and
if the tool is a tool to which both paragraphs (1)(r) and (s) apply in the taxation year, the amount that is the greater of the value of A determined under subparagraph (1)(r)(ii) in respect of the taxpayer for the taxation year and the amount determined under subparagraph (i) of the description of A in paragraph (1)(s) in respect of the taxpayer for the taxation year.
Terms used in subsection (7) 6
eligible apprentice mechanic defined in the Act subsection 8(6)
Paragraph 8(6)(a): “a taxpayer is an eligible apprentice mechanic in a taxation year if, at any time in the taxation year, the taxpayer (i) is registered in a program established in accordance with the laws of Canada or of a province that leads to designation under those laws as a mechanic licensed to repair self-propelled motorized vehicles, and (ii) is employed as an apprentice mechanic”. Enacted by S.C. 2002, c. 9, s. 21, for tools acquired after 2001; S.C. 2007, c. 2, s. 2, added programs under the laws of Canada. Paragraph 8(6)(c) lets a former apprentice continue to deduct the carried-forward amount in the description of C in subparagraph 8(1)(r)(ii).
eligible tool defined in the Act subsections 8(6) and (6.1)
Section 8 defines the term twice. For paragraph 8(1)(r), paragraph 8(6)(b) makes an eligible tool “a tool (including ancillary equipment)” that is acquired for use in the employment as an eligible apprentice mechanic, has not been used for any purpose before acquisition, “is certified in prescribed form by the taxpayer’s employer to be required to be provided by the taxpayer as a condition of, and for use in,” that employment, and is not an electronic communication device or electronic data processing equipment unless it “can be used only for the purpose of measuring, locating or calculating”. For paragraph 8(1)(s), subsection 8(6.1) applies the same conditions to employment “as a tradesperson” and adds acquisition “on or after May 2, 2006”. Both the electronic-device exclusion and subsection 8(6.1) came from S.C. 2007, c. 2, s. 2. The certification is given on Form T2200, Part C (question 12 for a tradesperson and question 13 for an eligible apprentice mechanic, according to the CRA’s line 22900 page), and is required by these subsections, not by subsection 8(10).
taxpayer defined in the Act subsection 248(1)
“Taxpayer includes any person whether or not liable to pay tax.” Here it is the officer or employee whose income from the source is computed. Subsection 33(2) of the Interpretation Act (singular includes plural) lets “an office or employment” cover several positions; the other two statutes add nothing.
taxation year; year Act and Interpretation Act subsection 249(1)
For an individual, “a calendar year” (paragraph 249(1)(c)); the bare word “year” means the taxation year by context. Subsection 37(1) of the Interpretation Act is consistent but displaced; the other two statutes add nothing.
office; officer defined in the Act subsection 248(1)
“The position of an individual entitling the individual to a fixed or ascertainable stipend or remuneration”, including a corporation director; “officer means a person holding such an office”. Section 8 applies to office income as to employment income. None of the three further statutes adds anything.
employment; employee Act and case law subsection 248(1); 671122 Ontario Ltd. v. Sagaz Industries Canada Inc., 2001 SCC 59
“The position of an individual in the service of some other person”; “employee includes officer”. Whether a worker is an employee, and so confined to section 8, turns on the Sagaz question, whether the person “is performing them as a person in business on his own account” (para. 47), as applied in Schroeder v. The King, 2024 TCC 56, paras. 23 to 29. Section 3 of the Income Tax Conventions Interpretation Act gives undefined treaty terms their meaning under the Act; the other two statutes add nothing.
Presumption
(9)Notwithstanding any other provision of this Act, the total of all amounts that would otherwise be deductible by a taxpayer pursuant to paragraph 8(1)(f), 8(1)(h) or 8(1)(j) for travelling in the course of the taxpayer’s employment in an aircraft that is owned or rented by the taxpayer, may not exceed an amount that is reasonable in the circumstances having regard to the relative cost and availability of other modes of transportation.
Terms used in subsection (9) 6
travelling in the course of the office or employment defined by the courts Hogg v. Canada, 2002 FCA 177, paras. 9 to 15
The expense must be incurred while performing the duties; home-to-work travel is personal (Hogg; Brown v. The Queen, 2012 TCC 452, paras. 5 to 12). None of the three further statutes adds anything.
aircraft defined in the Act paragraph 8(1)(j); subsection 8(9)
Undefined; an aircraft “required for use in the performance of the duties”, subject to the reasonableness limit in subsection 8(9). None of the three further statutes adds anything.
taxpayer defined in the Act subsection 248(1)
“Taxpayer includes any person whether or not liable to pay tax.” Here it is the officer or employee whose income from the source is computed. Subsection 33(2) of the Interpretation Act (singular includes plural) lets “an office or employment” cover several positions; the other two statutes add nothing.
taxation year; year Act and Interpretation Act subsection 249(1)
For an individual, “a calendar year” (paragraph 249(1)(c)); the bare word “year” means the taxation year by context. Subsection 37(1) of the Interpretation Act is consistent but displaced; the other two statutes add nothing.
office; officer defined in the Act subsection 248(1)
“The position of an individual entitling the individual to a fixed or ascertainable stipend or remuneration”, including a corporation director; “officer means a person holding such an office”. Section 8 applies to office income as to employment income. None of the three further statutes adds anything.
employment; employee Act and case law subsection 248(1); 671122 Ontario Ltd. v. Sagaz Industries Canada Inc., 2001 SCC 59
“The position of an individual in the service of some other person”; “employee includes officer”. Whether a worker is an employee, and so confined to section 8, turns on the Sagaz question, whether the person “is performing them as a person in business on his own account” (para. 47), as applied in Schroeder v. The King, 2024 TCC 56, paras. 23 to 29. Section 3 of the Income Tax Conventions Interpretation Act gives undefined treaty terms their meaning under the Act; the other two statutes add nothing.
Certificate of employer
(10)An amount otherwise deductible for a taxation year under paragraph (1)(c), (f), (h) or (h.1) or subparagraph (1)(i)(ii) or (iii) by a taxpayer shall not be deducted unless the taxpayer’s employer confirms in prescribed form that the conditions set out in the applicable provision were met in the year in respect of the taxpayer and the form is filed with the taxpayer’s return of income for the year.
Terms used in subsection (10) 8
employer defined in the Act subsection 248(1)
In relation to an officer, “the person from whom the officer receives the officer’s remuneration”; otherwise the ordinary meaning. The employer’s confirmation in prescribed form is a condition under subsections 8(6), (6.1) and (10). None of the three further statutes adds anything.
member of the clergy; religious order; regular minister of a religious denomination defined by the courts Canada v. Lefebvre, 2009 FCA 307, paras. 20 to 26
The status test in subparagraph 8(1)(c)(i), undefined in the Act. The person’s status, held under a legitimate appointment, must have some permanence (Lefebvre, para. 26); lay pastoral agents on terminable mandates do not qualify (para. 49). None of the three further statutes adds anything.
required under the contract of employment defined by the courts Barry v. Canada, 2014 FCA 280, paras. 10 to 13
The contract must oblige the employee to pay; a choice is not enough (Barry, para. 10), though a term may be implied where necessary (Verrier, as characterised in Samotus v. The King, 2025 TCC 104, paras. 22 and 24). None of the three further statutes adds anything.
regulation; prescribed; prescribed form defined in the Act subsection 248(1)
A form authorized by the Minister, or otherwise prescribed by regulation: in practice Form T2200, and Form T1223 for paragraph 8(1)(c). None of the three further statutes adds anything.
taxpayer defined in the Act subsection 248(1)
“Taxpayer includes any person whether or not liable to pay tax.” Here it is the officer or employee whose income from the source is computed. Subsection 33(2) of the Interpretation Act (singular includes plural) lets “an office or employment” cover several positions; the other two statutes add nothing.
taxation year; year Act and Interpretation Act subsection 249(1)
For an individual, “a calendar year” (paragraph 249(1)(c)); the bare word “year” means the taxation year by context. Subsection 37(1) of the Interpretation Act is consistent but displaced; the other two statutes add nothing.
office; officer defined in the Act subsection 248(1)
“The position of an individual entitling the individual to a fixed or ascertainable stipend or remuneration”, including a corporation director; “officer means a person holding such an office”. Section 8 applies to office income as to employment income. None of the three further statutes adds anything.
employment; employee Act and case law subsection 248(1); 671122 Ontario Ltd. v. Sagaz Industries Canada Inc., 2001 SCC 59
“The position of an individual in the service of some other person”; “employee includes officer”. Whether a worker is an employee, and so confined to section 8, turns on the Sagaz question, whether the person “is performing them as a person in business on his own account” (para. 47), as applied in Schroeder v. The King, 2024 TCC 56, paras. 23 to 29. Section 3 of the Income Tax Conventions Interpretation Act gives undefined treaty terms their meaning under the Act; the other two statutes add nothing.
Goods and services tax
(11)For the purposes of this section and section 6, the amount of any rebate paid or payable to a taxpayer under the Excise Tax Act in respect of the goods and services tax shall be deemed not to be an amount that is reimbursed to the taxpayer or to which the taxpayer is entitled.
Terms used in subsection (11) 5
goods and services tax defined in the Act subsection 248(1)
“The tax payable under Part IX of the Excise Tax Act”; its rebate is deemed not to be a reimbursement. None of the three further statutes adds anything.
taxpayer defined in the Act subsection 248(1)
“Taxpayer includes any person whether or not liable to pay tax.” Here it is the officer or employee whose income from the source is computed. Subsection 33(2) of the Interpretation Act (singular includes plural) lets “an office or employment” cover several positions; the other two statutes add nothing.
taxation year; year Act and Interpretation Act subsection 249(1)
For an individual, “a calendar year” (paragraph 249(1)(c)); the bare word “year” means the taxation year by context. Subsection 37(1) of the Interpretation Act is consistent but displaced; the other two statutes add nothing.
office; officer defined in the Act subsection 248(1)
“The position of an individual entitling the individual to a fixed or ascertainable stipend or remuneration”, including a corporation director; “officer means a person holding such an office”. Section 8 applies to office income as to employment income. None of the three further statutes adds anything.
employment; employee Act and case law subsection 248(1); 671122 Ontario Ltd. v. Sagaz Industries Canada Inc., 2001 SCC 59
“The position of an individual in the service of some other person”; “employee includes officer”. Whether a worker is an employee, and so confined to section 8, turns on the Sagaz question, whether the person “is performing them as a person in business on his own account” (para. 47), as applied in Schroeder v. The King, 2024 TCC 56, paras. 23 to 29. Section 3 of the Income Tax Conventions Interpretation Act gives undefined treaty terms their meaning under the Act; the other two statutes add nothing.
Forfeiture of securities by employee
(12)If, in a taxation year,
an employee is deemed by subsection 7(2) to have disposed of a security (as defined in subsection 7(7)) held by a trust,
the trust disposed of the security to the person that issued the security,
the disposition occurred as a result of the employee not meeting the conditions necessary for title to the security to vest in the employee, and
the amount paid by the person to acquire the security from the trust or to redeem or cancel the security did not exceed the amount paid to the person for the security,
the following rules apply:
there may be deducted in computing the employee’s income for the year from employment the amount, if any, by which
the amount of the benefit deemed by subsection 7(1) to have been received by the employee in the year or a preceding taxation year in respect of the security
exceeds
any amount deducted under paragraph 110(1)(d) or (d.1) in computing the employee’s taxable income for the year or a preceding taxation year in respect of that benefit, and
notwithstanding any other provision of this Act, the employee’s gain or loss from the disposition of the security is deemed to be nil and section 84 does not apply to deem a dividend to have been received in respect of the disposition.
Terms used in subsection (12) 7
employer defined in the Act subsection 248(1)
In relation to an officer, “the person from whom the officer receives the officer’s remuneration”; otherwise the ordinary meaning. The employer’s confirmation in prescribed form is a condition under subsections 8(6), (6.1) and (10). None of the three further statutes adds anything.
person; individual Act and Interpretation Act subsection 248(1); subsection 248(1)
“Person” includes a corporation and legal representatives; “individual means a person other than a corporation”, used for the assistant in paragraphs 8(1)(l.1) and (l.2) and the claimant in subsection 8(13). Subsection 35(1) of the Interpretation Act is overtaken by subsection 248(1); the other two statutes add nothing.
trust; security; disposition Act and Interpretation Act subsection 248(1); subsection 7(7); subsection 248(1)
A share or mutual fund trust unit held by a trust and redeemed, acquired or cancelled by the issuer. Subsection 33(3) of the Interpretation Act gives “disposed of” the corresponding meaning; the other two statutes add nothing.
taxpayer defined in the Act subsection 248(1)
“Taxpayer includes any person whether or not liable to pay tax.” Here it is the officer or employee whose income from the source is computed. Subsection 33(2) of the Interpretation Act (singular includes plural) lets “an office or employment” cover several positions; the other two statutes add nothing.
taxation year; year Act and Interpretation Act subsection 249(1)
For an individual, “a calendar year” (paragraph 249(1)(c)); the bare word “year” means the taxation year by context. Subsection 37(1) of the Interpretation Act is consistent but displaced; the other two statutes add nothing.
office; officer defined in the Act subsection 248(1)
“The position of an individual entitling the individual to a fixed or ascertainable stipend or remuneration”, including a corporation director; “officer means a person holding such an office”. Section 8 applies to office income as to employment income. None of the three further statutes adds anything.
employment; employee Act and case law subsection 248(1); 671122 Ontario Ltd. v. Sagaz Industries Canada Inc., 2001 SCC 59
“The position of an individual in the service of some other person”; “employee includes officer”. Whether a worker is an employee, and so confined to section 8, turns on the Sagaz question, whether the person “is performing them as a person in business on his own account” (para. 47), as applied in Schroeder v. The King, 2024 TCC 56, paras. 23 to 29. Section 3 of the Income Tax Conventions Interpretation Act gives undefined treaty terms their meaning under the Act; the other two statutes add nothing.
Work space in home
(13)Notwithstanding paragraphs 8(1)(f) and 8(1)(i),
no amount is deductible in computing an individual’s income for a taxation year from an office or employment in respect of any part (in this subsection referred to as the “work space”) of a self-contained domestic establishment in which the individual resides, except to the extent that the work space is either
the place where the individual principally performs the duties of the office or employment, or
used exclusively during the period in respect of which the amount relates for the purpose of earning income from the office or employment and used on a regular and continuous basis for meeting customers or other persons in the ordinary course of performing the duties of the office or employment;
where the conditions set out in subparagraph 8(13)(a)(i) or 8(13)(a)(ii) are met, the amount in respect of the work space that is deductible in computing the individual’s income for the year from the office or employment shall not exceed the individual’s income for the year from the office or employment, computed without reference to any deduction in respect of the work space; and
any amount in respect of a work space that was, solely because of paragraph 8(13)(b), not deductible in computing the individual’s income for the immediately preceding taxation year from the office or employment shall be deemed to be an amount in respect of a work space that is otherwise deductible in computing the individual’s income for the year from that office or employment and that, subject to paragraph 8(13)(b), may be deducted in computing the individual’s income for the year from the office or employment.
Terms used in subsection (13) 9
work space defined in the Act subsection 8(13)
Paragraph 8(13)(a) calls “any part … of a self-contained domestic establishment in which the individual resides” the “work space”. Nothing is deductible for it under paragraph 8(1)(f) or (i) unless it is the place where the individual principally performs the duties, or is used exclusively for the employment and on a regular and continuous basis for meeting customers or other persons. Enacted by S.C. 1991, c. 49, s. 5(8) (as revised by S.C. 1994, c. 7, Sch. II, s. 5) for 1991 and later years. “Principally” means more than 50 per cent, tested employment by employment (Bykov v. The King, 2024 TCC 36, paras. 44 and 47).
person; individual Act and Interpretation Act subsection 248(1); subsection 248(1)
“Person” includes a corporation and legal representatives; “individual means a person other than a corporation”, used for the assistant in paragraphs 8(1)(l.1) and (l.2) and the claimant in subsection 8(13). Subsection 35(1) of the Interpretation Act is overtaken by subsection 248(1); the other two statutes add nothing.
self-contained domestic establishment defined in the Act subsection 248(1)
“A dwelling-house, apartment or other similar place of residence in which place a person as a general rule sleeps and eats”, for subparagraph 8(1)(e)(ii) and subsection 8(13). None of the three further statutes adds anything.
principally defined by the courts Bykov v. The King, 2024 TCC 36, paras. 44 and 47, aff’d 2025 FCA 103
More than 50 per cent, tested per employment; the CRA uses more than 50 per cent for four consecutive weeks. None of the three further statutes adds anything.
used on a regular and continuous basis for meeting customers or other persons defined by the courts Bykov v. The King, 2024 TCC 36, para. 48; Landry v. The Queen, 2007 TCC 383, paras. 26 to 32
Requires both exclusive use and regular meetings; the CRA requires face-to-face meetings (technical interpretation 2013-0481171E5). None of the three further statutes adds anything.
taxpayer defined in the Act subsection 248(1)
“Taxpayer includes any person whether or not liable to pay tax.” Here it is the officer or employee whose income from the source is computed. Subsection 33(2) of the Interpretation Act (singular includes plural) lets “an office or employment” cover several positions; the other two statutes add nothing.
taxation year; year Act and Interpretation Act subsection 249(1)
For an individual, “a calendar year” (paragraph 249(1)(c)); the bare word “year” means the taxation year by context. Subsection 37(1) of the Interpretation Act is consistent but displaced; the other two statutes add nothing.
office; officer defined in the Act subsection 248(1)
“The position of an individual entitling the individual to a fixed or ascertainable stipend or remuneration”, including a corporation director; “officer means a person holding such an office”. Section 8 applies to office income as to employment income. None of the three further statutes adds anything.
employment; employee Act and case law subsection 248(1); 671122 Ontario Ltd. v. Sagaz Industries Canada Inc., 2001 SCC 59
“The position of an individual in the service of some other person”; “employee includes officer”. Whether a worker is an employee, and so confined to section 8, turns on the Sagaz question, whether the person “is performing them as a person in business on his own account” (para. 47), as applied in Schroeder v. The King, 2024 TCC 56, paras. 23 to 29. Section 3 of the Income Tax Conventions Interpretation Act gives undefined treaty terms their meaning under the Act; the other two statutes add nothing.
Labour mobility deduction — interpretation
(14)For the purposes of this subsection and paragraph (1)(t),
a taxpayer is an eligible tradesperson for a taxation year if, in the taxation year, the taxpayer has income from employment as a tradesperson or apprentice and performs their duties of employment in construction activities described in subsection 238(1) of the Income Tax Regulations;
a temporary work location of a taxpayer is a location in Canada
at which the taxpayer performs their duties of employment under a temporary employment contract, and
that is not situated in the locality where the taxpayer is ordinarily employed or carrying on business;
an eligible temporary relocation of a taxpayer is a temporary relocation that meets the following conditions:
the relocation is undertaken by the taxpayer to enable the taxpayer to perform their duties of employment as an eligible tradesperson at one or more temporary work locations of the taxpayer within the same locality,
prior to the relocation, the taxpayer ordinarily resided at a residence in Canada (in this subsection referred to as the “ordinary residence”),
the taxpayer was required by their duties of employment referred to in subparagraph (i) to be away from the ordinary residence for a period of not less than 36 hours,
during the temporary relocation, the taxpayer temporarily resided at one or more lodgings in Canada (in this subsection referred to as the “temporary lodging”), and
the distance between the ordinary residence and each temporary work location of the taxpayer referred to in subparagraph (i) is not less than 120 kilometres greater than the distance between each temporary lodging referred to in subparagraph (iv) and each temporary work location of the taxpayer referred to in subparagraph (i);
subject to paragraph (e), an eligible temporary relocation expense of a taxpayer for a taxation year is a reasonable expense incurred by the taxpayer during the taxation year, the previous taxation year or prior to February 1 of the following taxation year, in respect of
transportation for one round trip per eligible temporary relocation by the taxpayer between the ordinary residence and the temporary lodging,
meals consumed by the taxpayer during the round trip described in subparagraph (i), and
the taxpayer’s temporary lodging if, throughout the period of the taxpayer’s temporary relocation,
the taxpayer maintains their ordinary residence as their principal place of residence, and
the ordinary residence remains available for the taxpayer’s occupancy and is not rented to any other person;
an eligible temporary relocation expense described in paragraph (d) does not include an expense incurred by the taxpayer to the extent that
the expense is deducted (other than under paragraph (1)(t)) in computing the taxpayer’s income for any taxation year,
the expense was deductible under paragraph (1)(t) by the taxpayer for the immediately preceding taxation year, or
the taxpayer is entitled to receive a reimbursement, allowance or any other form of assistance (other than an amount that is included in computing the income for any taxation year of the taxpayer and that is not deductible in computing the income of the taxpayer) in respect of the expense; and
a taxpayer’s temporary relocation deduction for a taxation year in respect of an eligible temporary relocation of the taxpayer is the lesser of
the total eligible temporary relocation expenses of the taxpayer for the taxation year incurred in respect of the eligible temporary relocation, and
half of the taxpayer’s total income for the taxation year from employment as an eligible tradesperson at all temporary work locations referred to in subparagraph (c)(i) in respect of the eligible temporary relocation (computed without reference to this section).
Terms used in subsection (14) 18
eligible tradesperson defined in the Act subsection 8(14)
Paragraph 8(14)(a): “a taxpayer is an eligible tradesperson for a taxation year if, in the taxation year, the taxpayer has income from employment as a tradesperson or apprentice and performs their duties of employment in construction activities described in subsection 238(1) of the Income Tax Regulations”. Subsection 238(1) of the Regulations provides that “construction activities includes the erection, excavation, installation, alteration, modification, repair, improvement, demolition, destruction, dismantling or removal of all or any part of a building, structure, surface or sub-surface construction, or any similar property.” The definition was enacted with paragraph 8(1)(t) by S.C. 2022, c. 10, s. 2, for 2022 and later years, and has not been amended. “Tradesperson” itself is not defined.
temporary work location defined in the Act subsection 8(14)
Paragraph 8(14)(b): “a temporary work location of a taxpayer is a location in Canada (i) at which the taxpayer performs their duties of employment under a temporary employment contract, and (ii) that is not situated in the locality where the taxpayer is ordinarily employed or carrying on business”. “Locality” and “temporary employment contract” are undefined; Guide T4044 (2025) gives a city as an example of a locality. “Canada” includes the internal waters and territorial sea (Interpretation Act, s. 35(1)). Enacted by S.C. 2022, c. 10, s. 2.
eligible temporary relocation defined in the Act subsection 8(14)
Paragraph 8(14)(c) sets five conditions: the relocation enables the taxpayer to perform duties as an eligible tradesperson at temporary work locations “within the same locality”; before it, the taxpayer ordinarily resided at a residence in Canada; the duties required absence from that residence “for a period of not less than 36 hours”; the taxpayer temporarily resided at lodgings in Canada; and “the distance between the ordinary residence and each temporary work location … is not less than 120 kilometres greater than the distance between each temporary lodging … and each temporary work location”. The distance was 150 km for 2022 to 2025; S.C. 2026, c. 22, s. 2(2) and (3), substituted 120 km for 2026 and later years. The concept differs from “eligible relocation” in subsection 248(1), the moving-expense test of 40 km.
ordinary residence defined in the Act subsection 8(14)
Subparagraph 8(14)(c)(ii) labels the residence in Canada where the taxpayer ordinarily resided before the relocation “(in this subsection referred to as the ‘ordinary residence’)”. Lodging costs qualify under subparagraph 8(14)(d)(iii) only if, throughout the relocation, the taxpayer “maintains their ordinary residence as their principal place of residence” and it “remains available for the taxpayer’s occupancy and is not rented to any other person”. The label differs from “old residence” in the moving-expense rules. Enacted by S.C. 2022, c. 10, s. 2.
temporary lodging defined in the Act subsection 8(14)
Subparagraph 8(14)(c)(iv) labels “one or more lodgings in Canada (in this subsection referred to as the ‘temporary lodging’)”. It is the reference point for the distance test in subparagraph (c)(v) and the subject of the round trip and lodging expenses in subparagraphs (d)(i) and (iii). Enacted by S.C. 2022, c. 10, s. 2.
eligible temporary relocation expense defined in the Act subsection 8(14)
Paragraph 8(14)(d): subject to paragraph (e), “a reasonable expense incurred by the taxpayer during the taxation year, the previous taxation year or prior to February 1 of the following taxation year”, for one round trip per relocation between the ordinary residence and the temporary lodging, meals during that trip, and the temporary lodging if the ordinary residence is kept as the principal place of residence and not rented. Paragraph (e) excludes expenses deducted elsewhere, expenses deductible under paragraph 8(1)(t) for the preceding year, and expenses for which a reimbursement, allowance or other assistance is available, other than an amount included in income and not deductible. Enacted by S.C. 2022, c. 10, s. 2.
temporary relocation deduction defined in the Act subsection 8(14)
Paragraph 8(14)(f): the lesser of the eligible temporary relocation expenses for the year in respect of the relocation and “half of the taxpayer’s total income for the taxation year from employment as an eligible tradesperson at all temporary work locations referred to in subparagraph (c)(i) in respect of the eligible temporary relocation (computed without reference to this section)”. Paragraph 8(1)(t) totals the deductions for all relocations and caps them at $10,000 for 2026 and later years ($4,000 for 2022 to 2025), indexed for taxation years beginning after 2026 under paragraph 117.1(2)(b.1). Enacted by S.C. 2022, c. 10, s. 2.
principal place of residence defined in the Act subparagraph 8(1)(c)(iv); clause 8(14)(d)(iii)(A)
Undefined, and distinct from “principal residence” in section 54. None of the three further statutes adds anything.
person; individual Act and Interpretation Act subsection 248(1); subsection 248(1)
“Person” includes a corporation and legal representatives; “individual means a person other than a corporation”, used for the assistant in paragraphs 8(1)(l.1) and (l.2) and the claimant in subsection 8(13). Subsection 35(1) of the Interpretation Act is overtaken by subsection 248(1); the other two statutes add nothing.
business; employer’s place of business Act and case law subsection 248(1); Martorelli v. The Queen, 2010 TCC 216, para. 18
“Business” excludes “an office or employment”. A construction site is the employer’s place of business if it is in the nature of a permanent establishment of the employer (Martorelli, para. 18, citing Champaigne v. The Queen, 2006 TCC 74, and Dionne v. Canada, 2006 FCA 79, which adopted Champaigne without restating the test). None of the three further statutes adds anything.
meal; twelve hours; municipality and metropolitan area Act and case law Richardson v. The Queen, 2018 TCC 135, para. 17
Meals count under paragraphs 8(1)(f) and (h) only during a required absence of twelve hours from the municipality and metropolitan area of the employer’s establishment; Toronto-area meals failed. None of the three further statutes adds anything.
regulation; prescribed; prescribed form defined in the Act subsection 248(1)
A form authorized by the Minister, or otherwise prescribed by regulation: in practice Form T2200, and Form T1223 for paragraph 8(1)(c). None of the three further statutes adds anything.
tradesperson; apprentice mechanic defined in the Act paragraphs 8(1)(r) and (s); subsections 8(6) and (14)
Both undefined beyond subparagraph 8(6)(a)(ii) and paragraph 8(14)(a). “Province” includes the territories (Interpretation Act, s. 35(1)); the other two statutes add nothing.
Canada; province Interpretation Act Interpretation Act, s. 35(1)
“Canada” includes internal waters and the territorial sea; “province” includes the three territories. Section 5 of the Income Tax Conventions Interpretation Act defines “Canada” for treaties only; the Income Tax Application Rules add nothing.
taxpayer defined in the Act subsection 248(1)
“Taxpayer includes any person whether or not liable to pay tax.” Here it is the officer or employee whose income from the source is computed. Subsection 33(2) of the Interpretation Act (singular includes plural) lets “an office or employment” cover several positions; the other two statutes add nothing.
taxation year; year Act and Interpretation Act subsection 249(1)
For an individual, “a calendar year” (paragraph 249(1)(c)); the bare word “year” means the taxation year by context. Subsection 37(1) of the Interpretation Act is consistent but displaced; the other two statutes add nothing.
office; officer defined in the Act subsection 248(1)
“The position of an individual entitling the individual to a fixed or ascertainable stipend or remuneration”, including a corporation director; “officer means a person holding such an office”. Section 8 applies to office income as to employment income. None of the three further statutes adds anything.
employment; employee Act and case law subsection 248(1); 671122 Ontario Ltd. v. Sagaz Industries Canada Inc., 2001 SCC 59
“The position of an individual in the service of some other person”; “employee includes officer”. Whether a worker is an employee, and so confined to section 8, turns on the Sagaz question, whether the person “is performing them as a person in business on his own account” (para. 47), as applied in Schroeder v. The King, 2024 TCC 56, paras. 23 to 29. Section 3 of the Income Tax Conventions Interpretation Act gives undefined treaty terms their meaning under the Act; the other two statutes add nothing.
Source: Justice Laws Website. Not an official version.
Historic text
Immediately preceding version, in force from 2024-06-20 to 2026-06-17:
Show the text in force 2024-06-20 to 2026-06-17
Deductions allowed
8 (1) In computing a taxpayer’s income for a taxation year from an office or employment, there may be deducted such of the following amounts as are wholly applicable to that source or such part of the following amounts as may reasonably be regarded as applicable thereto
(a) [Repealed, 2001, c. 17, s. 3(1)]
Legal expenses of employee
(b) amounts paid by the taxpayer in the year as or on account of legal expenses incurred by the taxpayer to collect, or to establish a right to, an amount owed to the taxpayer that, if received by the taxpayer, would be required by this Subdivision to be included in computing the taxpayer’s income;
Clergy residence
(c) where, in the year, the taxpayer
(i) is a member of the clergy or of a religious order or a regular minister of a religious denomination, and
(ii) is
(A) in charge of a diocese, parish or congregation,
(B) ministering to a diocese, parish or congregation, or
(C) engaged exclusively in full-time administrative service by appointment of a religious order or religious denomination,
the amount, not exceeding the taxpayer’s remuneration for the year from the office or employment, equal to
(iii) the total of all amounts including amounts in respect of utilities, included in computing the taxpayer’s income for the year under section 6 in respect of the residence or other living accommodation occupied by the taxpayer in the course of, or because of, the taxpayer’s office or employment as such a member or minister so in charge of or ministering to a diocese, parish or congregation, or so engaged in such administrative service, or
(iv) rent and utilities paid by the taxpayer for the taxpayer’s principal place of residence (or other principal living accommodation), ordinarily occupied during the year by the taxpayer, or the fair rental value of such a residence (or other living accommodation), including utilities, owned by the taxpayer or the taxpayer’s spouse or common-law partner, not exceeding the lesser of
(A) the greater of
(I) $1,000 multiplied by the number of months (to a maximum of ten) in the year, during which the taxpayer is a person described in subparagraphs (i) and (ii), and
(II) one-third of the taxpayer’s remuneration for the year from the office or employment, and
(B) the amount, if any, by which
(I) the rent paid or the fair rental value of the residence or living accommodation, including utilities
exceeds
(II) the total of all amounts each of which is an amount deducted, in connection with the same accommodation or residence, in computing an individual’s income for the year from an office or employment or from a business (other than an amount deducted under this paragraph by the taxpayer), to the extent that the amount can reasonably be considered to relate to the period, or a portion of the period, in respect of which an amount is claimed by the taxpayer under this paragraph;
Teachers’ exchange fund contribution
(d) a single amount, in respect of all employments of the taxpayer as a teacher, not exceeding $250 paid by the taxpayer in the year to a fund established by the Canadian Education Association for the benefit of teachers from Commonwealth countries present in Canada under a teachers’ exchange arrangement;
Expenses of railway employees
(e) amounts disbursed by the taxpayer in the year for meals and lodging while employed by a railway company
(i) away from the taxpayer’s ordinary place of residence as a relieving telegrapher or station agent or on maintenance and repair work, or
(ii) away from the municipality and the metropolitan area, if there is one, where the taxpayer’s home terminal was located, and at a location from which, by reason of distance from the place where the taxpayer maintained a self-contained domestic establishment in which the taxpayer resided and actually supported a spouse or common-law partner or a person dependent on the taxpayer for support and connected with the taxpayer by blood relationship, marriage or common-law partnership or adoption, the taxpayer could not reasonably be expected to return daily to that place,
to the extent that the taxpayer has not been reimbursed and is not entitled to be reimbursed in respect thereof;
Sales expenses
(f) where the taxpayer was employed in the year in connection with the selling of property or negotiating of contracts for the taxpayer’s employer, and
(i) under the contract of employment was required to pay the taxpayer’s own expenses,
(ii) was ordinarily required to carry on the duties of the employment away from the employer’s place of business,
(iii) was remunerated in whole or part by commissions or other similar amounts fixed by reference to the volume of the sales made or the contracts negotiated, and
(iv) was not in receipt of an allowance for travel expenses in respect of the taxation year that was, by virtue of subparagraph 6(1)(b)(v), not included in computing the taxpayer’s income,
amounts expended by the taxpayer in the year for the purpose of earning the income from the employment (not exceeding the commissions or other similar amounts referred to in subparagraph 8(1)(f)(iii) and received by the taxpayer in the year) to the extent that those amounts were not
(v) outlays, losses or replacements of capital or payments on account of capital, except as described in paragraph 8(1)(j),
(vi) outlays or expenses that would, by virtue of paragraph 18(1)(l), not be deductible in computing the taxpayer’s income for the year if the employment were a business carried on by the taxpayer, or
(vii) amounts the payment of which reduced the amount that would otherwise be included in computing the taxpayer’s income for the year because of paragraph 6(1)(e);
Transport employee’s expenses
(g) where the taxpayer was an employee of a person whose principal business was passenger, goods, or passenger and goods transport and the duties of the employment required the taxpayer, regularly,
(i) to travel, away from the municipality where the employer’s establishment to which the taxpayer reported for work was located and away from the metropolitan area, if there is one, where it was located, on vehicles used by the employer to transport the goods or passengers, and
(ii) while so away from that municipality and metropolitan area, to make disbursements for meals and lodging,
amounts so disbursed by the taxpayer in the year to the extent that the taxpayer has not been reimbursed and is not entitled to be reimbursed in respect thereof;
Travel expenses
(h) where the taxpayer, in the year,
(i) was ordinarily required to carry on the duties of the office or employment away from the employer’s place of business or in different places, and
(ii) was required under the contract of employment to pay the travel expenses incurred by the taxpayer in the performance of the duties of the office or employment,
amounts expended by the taxpayer in the year (other than motor vehicle expenses) for travelling in the course of the office or employment, except where the taxpayer
(iii) received an allowance for travel expenses that was, because of subparagraph 6(1)(b)(v), 6(1)(b)(vi) or 6(1)(b)(vii), not included in computing the taxpayer’s income for the year, or
(iv) claims a deduction for the year under paragraph 8(1)(e), 8(1)(f) or 8(1)(g);
Motor vehicle travel expenses
(h.1) where the taxpayer, in the year,
(i) was ordinarily required to carry on the duties of the office or employment away from the employer’s place of business or in different places, and
(ii) was required under the contract of employment to pay motor vehicle expenses incurred in the performance of the duties of the office or employment,
amounts expended by the taxpayer in the year in respect of motor vehicle expenses incurred for travelling in the course of the office or employment, except where the taxpayer
(iii) received an allowance for motor vehicle expenses that was, because of paragraph 6(1)(b), not included in computing the taxpayer’s income for the year, or
(iv) claims a deduction for the year under paragraph 8(1)(f);
Dues and other expenses of performing duties
(i) an amount paid by the taxpayer in the year, or on behalf of the taxpayer in the year if the amount paid on behalf of the taxpayer is required to be included in the taxpayer’s income for the year, as
(i) annual professional membership dues the payment of which was necessary to maintain a professional status recognized by statute,
(ii) office rent, or salary to an assistant or substitute, the payment of which by the officer or employee was required by the contract of employment,
(iii) the cost of supplies that were consumed directly in the performance of the duties of the office or employment and that the officer or employee was required by the contract of employment to supply and pay for,
(iv) annual dues to maintain membership in a trade union as defined
(A) by section 3 of the Canada Labour Code, or
(B) in any provincial statute providing for the investigation, conciliation or settlement of industrial disputes,
or to maintain membership in an association of public servants the primary object of which is to promote the improvement of the members’ conditions of employment or work,
(v) annual dues that were, pursuant to the provisions of a collective agreement, retained by the taxpayer’s employer from the taxpayer’s remuneration and paid to a trade union or association designated in subparagraph 8(1)(i)(iv) of which the taxpayer was not a member,
(vi) dues to a parity or advisory committee or similar body, the payment of which was required under the laws of a province in respect of the employment for the year, and
(vii) dues to a professions board, the payment of which was required under the laws of a province,
to the extent that the taxpayer has not been reimbursed, and is not entitled to be reimbursed in respect thereof;
Motor vehicle and aircraft costs
(j) where a deduction may be made under paragraph 8(1)(f), 8(1)(h) or 8(1)(h.1) in computing the taxpayer’s income from an office or employment for a taxation year,
(i) any interest paid by the taxpayer in the year on borrowed money used for the purpose of acquiring, or on an amount payable for the acquisition of, property that is
(A) a motor vehicle that is used, or
(B) an aircraft that is required for use
in the performance of the duties of the taxpayer’s office or employment, and
(ii) such part, if any, of the capital cost to the taxpayer of
(A) a motor vehicle that is used, or
(B) an aircraft that is required for use
in the performance of the duties of the office or employment as is allowed by regulation;
C.P.P. contributions and U.I.A. premiums
(l.1) any amount payable by the taxpayer in the year
(i) as an employer’s premium under the employment Insurance Act, or
(ii) as an employer’s contribution under the Canada Pension Plan or under a provincial pension plan as defined in section 3 of the Canada Pension Plan,
in respect of salary, wages or other remuneration, including gratuities, paid to an individual employed by the taxpayer as an assistant or substitute to perform the duties of the taxpayer’s office or employment if an amount is deductible by the taxpayer for the year under subparagraph 8(1)(i)(ii) in respect of that individual;
Quebec parental insurance plan
(l.2) an amount payable by the taxpayer in the year as an employer’s premium under the Act respecting parental insurance, R.S.Q., c. A-29.011 in respect of salary, wages or other remuneration, including gratuities, paid to an individual employed by the taxpayer as an assistant or substitute to perform the duties of the taxpayer’s office or employment if an amount is deductible by the taxpayer for the year under subparagraph (i)(ii) in respect of that individual;
Employee’s registered pension plan contributions
(m) the amount in respect of contributions to registered pension plans that, by reason of subsection 147.2(4), is deductible in computing the taxpayer’s income for the year;
Employee RCA contributions
(m.2) an amount contributed by the taxpayer in the year to a pension plan in respect of services rendered by the taxpayer where the plan is a prescribed plan established by an enactment of Canada or a province or where
(i) the plan is a retirement compensation arrangement,
(ii) the amount was paid to a custodian (within the meaning assigned by the definition retirement compensation arrangement in subsection 248(1)) of the arrangement who is resident in Canada, and
(iii) either
(A) the taxpayer was required, by the terms of the taxpayer’s office or employment, to contribute the amount, and the total of the amounts contributed to the plan in the year by the taxpayer does not exceed the total of the amount contributed to the plan in the year by any other person in respect of the taxpayer, or
(B) the plan is a pension plan the registration of which under this Act was revoked (other than a plan the registration of which was revoked as of the effective date of its registration) and the amount was contributed in accordance with the terms of the plan as last registered;
(C) [Repealed, 1994, c. 21, s. 4(2)]
Salary reimbursement
(n) an amount paid by or on behalf of the taxpayer in the year pursuant to an arrangement (other than an arrangement described in subparagraph (b)(ii) of the definition top-up disability payment in subsection 6(17)) under which the taxpayer is required to reimburse any amount paid to the taxpayer for a period throughout which the taxpayer did not perform the duties of the office or employment, to the extent that
(i) the amount so paid to the taxpayer for the period was included in computing the taxpayer’s income from an office or employment, and
(ii) the total of amounts so reimbursed does not exceed the total of amounts received by the taxpayer for the period throughout which the taxpayer did not perform the duties of the office or employment;
Reimbursement of disability payments
(n.1) where,
(i) as a consequence of the receipt of a payment (in this paragraph referred to as the “deferred payment”) from an insurer, a payment (in this paragraph referred to as the “reimbursement payment”) is made by or on behalf of an individual to an employer or former employer of the individual pursuant to an arrangement described in subparagraph (b)(ii) of the definition top-up disability payment in subsection 6(17), and
(ii) the reimbursement payment is made
(A) in the year, other than within the first 60 days of the year if the deferred payment was received in the immediately preceding taxation year, or
(B) within 60 days after the end of the year, if the deferred payment was received in the year,
an amount equal to the lesser of
(iii) the amount included under paragraph 6(1)(f) in respect of the deferred payment in computing the individual’s income for any taxation year, and
(iv) the amount of the reimbursement payment;
Forfeited amounts
(o) where at the end of the year the rights of any person to receive benefits under a salary deferral arrangement in respect of the taxpayer have been extinguished or no person has any further right to receive any amount under the arrangement, the amount, if any, by which the total of all deferred amounts under the arrangement included in computing the taxpayer’s income for the year and preceding taxation years as benefits under paragraph 6(1)(a) exceeds the total of
(i) all such deferred amounts received by any person in that year or preceding taxation years out of or under the arrangement,
(ii) all such deferred amounts receivable by any person in subsequent taxation years out of or under the arrangement, and
(iii) all amounts deducted under this paragraph in computing the taxpayer’s income for preceding taxation years in respect of deferred amounts under the arrangement;
Idem
(o.1) an amount that is deductible in computing the taxpayer’s income for the year because of subsection 144(9);
Excess EPSP amounts
(o.2) an amount that is an excess EPSP amount (as defined in subsection 207.8(1)) of the taxpayer for the year, other than any portion of the excess EPSP amount for which the taxpayer’s tax for the year under subsection 207.8(2) is waived or cancelled;
Musical instrument costs
(p) where the taxpayer was employed in the year as a musician and as a term of the employment was required to provide a musical instrument for a period in the year, an amount (not exceeding the taxpayer’s income for the year from the employment, computed without reference to this paragraph) equal to the total of
(i) amounts expended by the taxpayer before the end of the year for the maintenance, rental or insurance of the instrument for that period, except to the extent that the amounts are otherwise deducted in computing the taxpayer’s income for any taxation year, and
(ii) such part, if any, of the capital cost to the taxpayer of the instrument as is allowed by regulation;
Artists’ employment expenses
(q) where the taxpayer’s income for the year from the office or employment includes income from an artistic activity
(i) that was the creation by the taxpayer of, but did not include the reproduction of, paintings, prints, etchings, drawings, sculptures or similar works of art,
(ii) that was the composition by the taxpayer of a dramatic, musical or literary work,
(iii) that was the performance by the taxpayer of a dramatic or musical work as an actor, dancer, singer or musician, or
(iv) in respect of which the taxpayer was a member of a professional artists’ association that is certified by the Minister of Communications,
amounts paid by the taxpayer before the end of the year in respect of expenses incurred for the purpose of earning the income from those activities to the extent that they were not deductible in computing the taxpayer’s income for a preceding taxation year, but not exceeding a single amount in respect of all such offices and employments of the taxpayer equal to the amount, if any, by which
(v) the lesser of $1,000 and 20% of the total of all amounts each of which is the taxpayer’s income from an office or employment for the year, before deducting any amount under this section, that was income from an artistic activity described in any of subparagraphs 8(1)(q)(i) to 8(1)(q)(iv),
exceeds
(vi) the total of all amounts deducted by the taxpayer for the year under paragraph 8(1)(j) or 8(1)(p) in respect of costs or expenses incurred for the purpose of earning the income from such an activity for the year;
Apprentice mechanics’ tool costs
(r) if the taxpayer was an eligible apprentice mechanic at any time after 2001 and before the end of the taxation year, the amount claimed by the taxpayer for the taxation year under this paragraph not exceeding the lesser of
(i) the taxpayer’s income for the taxation year computed without reference to this paragraph, and
(ii) the amount determined by the formula
(A - B) + C
where
A is the total of all amounts each of which is the cost to the taxpayer of an eligible tool acquired in the taxation year by the taxpayer or, if the taxpayer first becomes employed as an eligible apprentice mechanic in the taxation year, the cost to the taxpayer of an eligible tool acquired by the taxpayer in the last three months of the preceding taxation year,Bis the lesser of(A) the value of A for the taxation year in respect of the taxpayer, and
(B) the greater of
(I) the amount that is the total of the first dollar amount referred to in paragraph (s) and the amount determined for the taxation year for B in subsection 118(10), and
(II) 5% of the total of
1. the total of all amounts each of which is the taxpayer’s income from employment for the taxation year as an eligible apprentice mechanic, computed without reference to this paragraph, and
2. the amount, if any, by which the amount required by paragraph 56(1)(n.1) to be included in computing the taxpayer’s income for the taxation year exceeds the amount required by paragraph 60(p) to be deducted in computing that income, and
Deduction — tradesperson’s tools
(s) if the taxpayer is employed as a tradesperson at any time in the taxation year, the lesser of $1,000 and the amount determined by the formula
A - $1,000
where
A is the lesser of(i) the total of all amounts each of which is the cost of an eligible tool acquired by the taxpayer in the year, and
(ii) the total of
(A) the amount that would, if this subsection were read without reference to this paragraph, be the taxpayer’s income for the taxation year from employment as a tradesperson in the taxation year, and
(B) the amount, if any, by which the amount required by paragraph 56(1)(n.1) to be included in computing the taxpayer’s income for the taxation year exceeds the amount required by paragraph 60(p) to be deducted in computing that income; and
Labour mobility deduction
(t) if the taxpayer is an eligible tradesperson for the year, an amount equal to the lesser of
(i) $4,000, and
(ii) the total of all amounts each of which is a temporary relocation deduction of the taxpayer for the year in respect of an eligible temporary relocation of the taxpayer.
General limitation
(2) Except as permitted by this section, no deductions shall be made in computing a taxpayer’s income for a taxation year from an office or employment.
Meals
(4) An amount expended in respect of a meal consumed by a taxpayer who is an officer or employee shall not be included in computing the amount of a deduction under paragraph 8(1)(f) or 8(1)(h) unless the meal was consumed during a period while the taxpayer was required by the taxpayer’s duties to be away, for a period of not less than twelve hours, from the municipality where the employer’s establishment to which the taxpayer ordinarily reported for work was located and away from the metropolitan area, if there is one, where it was located.
Dues not deductible
(5) Notwithstanding subparagraphs 8(1)(i)(i), 8(1)(i)(iv), 8(1)(i)(vi) and 8(1)(i)(vii), dues are not deductible under those subparagraphs in computing a taxpayer’s income from an office or employment to the extent that they are, in effect, levied
(a) for or under a superannuation fund or plan;
(b) for or under a fund or plan for annuities, insurance (other than professional or malpractice liability insurance that is necessary to maintain a professional status recognized by statute) or similar benefits; or
(c) for any other purpose not directly related to the ordinary operating expenses of the committee or similar body, association, board or trade union, as the case may be.
Apprentice mechanics
(6) For the purpose of paragraph (1)(r),
(a) a taxpayer is an eligible apprentice mechanic in a taxation year if, at any time in the taxation year, the taxpayer
(i) is registered in a program established in accordance with the laws of Canada or of a province that leads to designation under those laws as a mechanic licensed to repair self-propelled motorized vehicles, and
(ii) is employed as an apprentice mechanic;
(b) an eligible tool is a tool (including ancillary equipment) that
(i) is acquired by a taxpayer for use in connection with the taxpayer’s employment as an eligible apprentice mechanic,
(ii) has not been used for any purpose before it is acquired by the taxpayer,
(iii) is certified in prescribed form by the taxpayer’s employer to be required to be provided by the taxpayer as a condition of, and for use in, the taxpayer’s employment as an eligible apprentice mechanic, and
(iv) is, unless the device or equipment can be used only for the purpose of measuring, locating or calculating, not an electronic communication device or electronic data processing equipment; and
(c) a taxpayer who, for a taxation year, is not an eligible apprentice mechanic and has an excess amount determined under the description of C in subparagraph (1)(r)(ii) is, for the taxation year, entitled to claim a deduction under that paragraph as if that excess amount were wholly applicable to an employment of the taxpayer.
Eligible tool of tradesperson
(6.1) For the purposes of paragraph (1)(s), an eligible tool of a taxpayer is a tool (including ancillary equipment) that
(a) is acquired by the taxpayer on or after May 2, 2006 for use in connection with the taxpayer’s employment as a tradesperson;
(b) has not been used for any purpose before it is acquired by the taxpayer;
(c) is certified in prescribed form by the taxpayer’s employer to be required to be provided by the taxpayer as a condition of, and for use in, the taxpayer’s employment as a tradesperson; and
(d) is, unless the device or equipment can be used only for the purpose of measuring, locating or calculating, not an electronic communication device or electronic data processing equipment.
Cost of tool
(7) Except for the purposes of the description of A in subparagraph (1)(r)(ii) and the description of A in paragraph (1)(s), the cost to a taxpayer of an eligible tool the cost of which was included in determining the value of one or both of those descriptions in respect of the taxpayer for a taxation year is the amount determined by the formula
K - (K × L/M)
where
Kis the cost to the taxpayer of the tool determined without reference to this subsection;Lis(a) if the tool is a tool to which only paragraph (1)(r) applies in the taxation year, the amount that would be determined under subparagraph (1)(r)(ii) in respect of the taxpayer for the taxation year if the value of C in that subparagraph were nil,
(b) if the tool is a tool to which only paragraph (1)(s) applies in the taxation year, the amount determined under that paragraph to be deductible by the taxpayer in the taxation year, or
(c) if the tool is a tool to which both paragraphs (1)(r) and (s) apply in the taxation year, the amount that is the total of
(i) the amount that would be determined under subparagraph (1)(r)(ii) in respect of the taxpayer for the taxation year if the value of C in that subparagraph were nil, and
(ii) the amount determined under paragraph (1)(s) to be deductible by the taxpayer in the taxation year; and
(a) if the tool is a tool to which only paragraph (1)(r) applies in the taxation year, the value of A determined under subparagraph (1)(r)(ii) in respect of the taxpayer for the taxation year,
(b) if the tool is a tool to which only paragraph (1)(s) applies in the taxation year, the amount determined under subparagraph (i) of the description of A in paragraph (1)(s) in respect of the taxpayer for the taxation year, and
(c) if the tool is a tool to which both paragraphs (1)(r) and (s) apply in the taxation year, the amount that is the greater of the value of A determined under subparagraph (1)(r)(ii) in respect of the taxpayer for the taxation year and the amount determined under subparagraph (i) of the description of A in paragraph (1)(s) in respect of the taxpayer for the taxation year.
Presumption
(9) Notwithstanding any other provision of this Act, the total of all amounts that would otherwise be deductible by a taxpayer pursuant to paragraph 8(1)(f), 8(1)(h) or 8(1)(j) for travelling in the course of the taxpayer’s employment in an aircraft that is owned or rented by the taxpayer, may not exceed an amount that is reasonable in the circumstances having regard to the relative cost and availability of other modes of transportation.
Certificate of employer
(10) An amount otherwise deductible for a taxation year under paragraph (1)(c), (f), (h) or (h.1) or subparagraph (1)(i)(ii) or (iii) by a taxpayer shall not be deducted unless the taxpayer’s employer confirms in prescribed form that the conditions set out in the applicable provision were met in the year in respect of the taxpayer and the form is filed with the taxpayer’s return of income for the year.
Goods and services tax
(11) For the purposes of this section and section 6, the amount of any rebate paid or payable to a taxpayer under the Excise Tax Act in respect of the goods and services tax shall be deemed not to be an amount that is reimbursed to the taxpayer or to which the taxpayer is entitled.
Forfeiture of securities by employee
(12) If, in a taxation year,
(a) an employee is deemed by subsection 7(2) to have disposed of a security (as defined in subsection 7(7)) held by a trust,
(b) the trust disposed of the security to the person that issued the security,
(c) the disposition occurred as a result of the employee not meeting the conditions necessary for title to the security to vest in the employee, and
(d) the amount paid by the person to acquire the security from the trust or to redeem or cancel the security did not exceed the amount paid to the person for the security,
the following rules apply:
(e) there may be deducted in computing the employee’s income for the year from employment the amount, if any, by which
(i) the amount of the benefit deemed by subsection 7(1) to have been received by the employee in the year or a preceding taxation year in respect of the security
exceeds
(ii) any amount deducted under paragraph 110(1)(d) or (d.1) in computing the employee’s taxable income for the year or a preceding taxation year in respect of that benefit, and
(f) notwithstanding any other provision of this Act, the employee’s gain or loss from the disposition of the security is deemed to be nil and section 84 does not apply to deem a dividend to have been received in respect of the disposition.
Work space in home
(13) Notwithstanding paragraphs 8(1)(f) and 8(1)(i),
(a) no amount is deductible in computing an individual’s income for a taxation year from an office or employment in respect of any part (in this subsection referred to as the “work space”) of a self-contained domestic establishment in which the individual resides, except to the extent that the work space is either
(i) the place where the individual principally performs the duties of the office or employment, or
(ii) used exclusively during the period in respect of which the amount relates for the purpose of earning income from the office or employment and used on a regular and continuous basis for meeting customers or other persons in the ordinary course of performing the duties of the office or employment;
(b) where the conditions set out in subparagraph 8(13)(a)(i) or 8(13)(a)(ii) are met, the amount in respect of the work space that is deductible in computing the individual’s income for the year from the office or employment shall not exceed the individual’s income for the year from the office or employment, computed without reference to any deduction in respect of the work space; and
(c) any amount in respect of a work space that was, solely because of paragraph 8(13)(b), not deductible in computing the individual’s income for the immediately preceding taxation year from the office or employment shall be deemed to be an amount in respect of a work space that is otherwise deductible in computing the individual’s income for the year from that office or employment and that, subject to paragraph 8(13)(b), may be deducted in computing the individual’s income for the year from the office or employment.
Labour mobility deduction — interpretation
(14) For the purposes of this subsection and paragraph (1)(t),
(a) a taxpayer is an eligible tradesperson for a taxation year if, in the taxation year, the taxpayer has income from employment as a tradesperson or apprentice and performs their duties of employment in construction activities described in subsection 238(1) of the Income Tax Regulations;
(b) a temporary work location of a taxpayer is a location in Canada
(i) at which the taxpayer performs their duties of employment under a temporary employment contract, and
(ii) that is not situated in the locality where the taxpayer is ordinarily employed or carrying on business;
(c) an eligible temporary relocation of a taxpayer is a temporary relocation that meets the following conditions:
(i) the relocation is undertaken by the taxpayer to enable the taxpayer to perform their duties of employment as an eligible tradesperson at one or more temporary work locations of the taxpayer within the same locality,
(ii) prior to the relocation, the taxpayer ordinarily resided at a residence in Canada (in this subsection referred to as the “ordinary residence”),
(iii) the taxpayer was required by their duties of employment referred to in subparagraph (i) to be away from the ordinary residence for a period of not less than 36 hours,
(iv) during the temporary relocation, the taxpayer temporarily resided at one or more lodgings in Canada (in this subsection referred to as the “temporary lodging”), and
(v) the distance between the ordinary residence and each temporary work location of the taxpayer referred to in subparagraph (i) is not less than 150 kilometres greater than the distance between each temporary lodging referred in subparagraph (iv) and each temporary work location of the taxpayer referred to in subparagraph (i);
(d) subject to paragraph (e), an eligible temporary relocation expense of a taxpayer for a taxation year is a reasonable expense incurred by the taxpayer during the taxation year, the previous taxation year or prior to February 1 of the following taxation year, in respect of
(i) transportation for one round trip per eligible temporary relocation by the taxpayer between the ordinary residence and the temporary lodging,
(ii) meals consumed by the taxpayer during the round trip described in subparagraph (i), and
(iii) the taxpayer’s temporary lodging if, throughout the period of the taxpayer’s temporary relocation,
(A) the taxpayer maintains their ordinary residence as their principal place of residence, and
(B) the ordinary residence remains available for the taxpayer’s occupancy and is not rented to any other person;
(e) an eligible temporary relocation expense described in paragraph (d) does not include an expense incurred by the taxpayer to the extent that
(i) the expense is deducted (other than under paragraph (1)(t)) in computing the taxpayer’s income for any taxation year,
(ii) the expense was deductible under paragraph (1)(t) by the taxpayer for the immediately preceding taxation year, or
(iii) the taxpayer is entitled to receive a reimbursement, allowance or any other form of assistance (other than an amount that is included in computing the income for any taxation year of the taxpayer and that is not deductible in computing the income of the taxpayer) in respect of the expense; and
(f) a taxpayer’s temporary relocation deduction for a taxation year in respect of an eligible temporary relocation of the taxpayer is the lesser of
(i) the total eligible temporary relocation expenses of the taxpayer for the taxation year incurred in respect of the eligible temporary relocation, and
(ii) half of the taxpayer’s total income for the taxation year from employment as an eligible tradesperson at all temporary work locations referred to in subparagraph (c)(i) in respect of the eligible temporary relocation (computed without reference to this section).
- [NOTE: Application provisions are not included in the consolidated text
- see relevant amending Acts and regulations.]
- R.S., 1985, c. 1 (5th Supp.), s. 8
- 1994, c. 7, Sch. II, s. 5, Sch. VIII, s. 2, c. 21, s. 4
- 1996, c. 23, s. 171
- 1998, c. 19, s. 69
- 1999, c. 22, s. 4
- 2000, c. 12, s. 142
- 2001, c. 17, s. 3
- 2002, c. 9, s. 21
- 2007, c. 2, s. 2
- 2012, c. 31, s. 3
- 2013, c. 34, s. 172
- 2022, c. 10, s. 2
- 2023, c. 26, s. 3
- 2024, c. 17, s. 4(F)
Earlier versions: Justice Laws point-in-time versions of the Act (from 31 August 2004), and CanLII (under “Versions”). On Justice Laws, each version of section 8 links to the one before it.
Enacting and amending legislation
- R.S., 1985, c. 1 (5th Supp.), s. 8; 1994, c. 7, Sch. II, s. 5, Sch. VIII, s. 2, c. 21, s. 4; 1996, c. 23, s. 171; 1998, c. 19, s. 69; 1999, c. 22, s. 4; 2000, c. 12, s. 142; 2001, c. 17, s. 3; 2002, c. 9, s. 21; 2007, c. 2, s. 2; 2012, c. 31, s. 3; 2013, c. 34, s. 172
- 2022, c. 10, s. 2
- 2023, c. 26, s. 3
- 2024, c. 17, s. 4(F)
- 2026, c. 22, s. 2
Text before 2004 is found in the annual Statutes of Canada cited above. Application and coming-into-force provisions are not part of the consolidation; see the amending Acts.
Legislative history
In plain terms, employees have never been allowed to deduct their costs the way a business can. The 1917 Act barred personal and living expenses for everyone; the 1948 Act gave employees a short, closed list of deductions; the 1971 reform moved that list into a new section 8 and added a small flat deduction, which was repealed in 1988; and since then Parliament has added items one at a time, most recently the labour mobility deduction for construction workers in 2022, enlarged in June 2026. The entries below are drawn from what could be read on 11 October 2026: the Justice Laws consolidation and all eight point-in-time versions of section 8 (31 August 2004 to 18 June 2026), the annual statutes on Justice Laws from 2001, the royal assent bills on parl.ca for 1994 to 2000, and scanned statute volumes for 1919, 1948, 1952, 1970, 1971 and 1988, to which a second pass on 12 October 2026 added the scanned annual volumes for 1972 to 1993. The official sessional text of the 1917 Act, the 1985 Fifth Supplement as enacted, the Department of Finance explanatory notes, and any amendment of 1972 to 1987 not listed below were not examined.
- The Income War Tax Act, 1917, S.C. 1917, c. 28, s. 3(1). No separate computation of employment income. “Income” was “the annual net profit or gain or gratuity, whether ascertained and capable of computation as being wages, salary, or other fixed amount, or unascertained as being fees or emoluments”, and the list of “exemptions and deductions” ended with the proviso that “in determining the income the personal and living expenses shall not be taken into consideration.” Read in a 1918 reproduction published with the Minister’s explanations, not in the official sessional volume.
- S.C. 1919, c. 55, s. 2(2) (royal assent 7 July 1919). Enacted paragraph 3(1)(e) of the 1917 Act: “in determining the income no deduction shall be allowed in respect of personal and living expenses”, personal and living expenses forming part of remuneration to be assessed as income. The same section added subsection 3(7), allowing as a deduction any part of an employee’s remuneration retained by the employer for a superannuation or pension fund, the first deduction aimed at employees.
- The Income Tax Act, S.C. 1948, c. 52, ss. 5 and 11 (royal assent 30 June 1948). Section 5 computed employment income as salary, wages and other remuneration plus benefits and allowances, “minus the deductions permitted by paragraphs (g) and (j) of subsection (1) of section 11 and by subsections (7) and (8) of section 11 but without any other deductions whatsoever”. The four items were approved superannuation contributions (generally up to $900), alimony or maintenance, commissioned salesmen’s expenses up to commissions, and transport employees’ unreimbursed meals and lodging. The closing words are the ancestor of subsection 8(2). Paragraph 12(1)(h) barred personal or living expenses except a business taxpayer’s travelling expenses away from home.
- R.S.C. 1952, c. 148, ss. 5 and 11. Section 5 now ended “minus the deductions permitted by paragraphs (i), (l) and (q) of subsection (1) of section 11 and by subsections (5) to (11), inclusive, of section 11 but without any other deductions whatsoever”. The list had grown to pension contributions, alimony, the clergy residence deduction, railway workers, salesmen, transport employees, past-service pension contributions, travelling expenses for employees ordinarily required to work away from the employer’s place of business, professional and union dues, office rent, assistants and supplies, and automobile capital cost allowance, with dues for superannuation, insurance and unrelated purposes excluded. Which of the amending Acts of 1949 to 1952 added each item was not traced.
- R.S.C. 1970, c. I-5, ss. 5(1) and 11(11) to (20). Same design: the deductions in subsections 11(11) to (18) covered railway employees, salesmen, transport employees, past-service pension contributions, travelling expenses, the twelve-hour meal rule, dues and other expenses, and automobile capital cost allowance, “but without any other deductions whatever”, with the dues limitation in subsection 11(20).
- S.C. 1970-71-72, c. 63, s. 1 (royal assent 23 December 1971; 1972 and later taxation years). Enacted section 8. Subsection 8(1) opened with the formula still in use, “such of the following amounts as are wholly applicable to that source or such part of the following amounts as may reasonably be regarded as applicable thereto”, and listed: (a) a general deduction of the lesser of $150 and 3 per cent of employment income (other than as a director) and certain section 56 amounts; (b) legal expenses “incurred by him in collecting salary or wages owed to him by his employer or former employer”; (c) clergy residence; (d) teachers’ exchange fund contributions up to $250; (e) railway employees’ meals and lodging; (f) salesmen’s expenses up to commissions, excluding capital outlays other than under (j) and expenses barred to a business by paragraph 18(1)(l); (g) transport employees’ meals and lodging; (h) travelling expenses; (i) dues, office rent, assistants and supplies; (j) automobile interest and capital cost allowance; (k) unemployment insurance premiums; (l) CPP contributions; and (m) registered pension plan contributions. Subsection 8(2) restated the 1948 bar in its present words, and subsection 8(3) denied the general deduction to a salesman claiming under paragraph (f), to members of Parliament, and in part where subsection 81(2) or (3) applied.
- S.C. 1974-75-76, c. 26, s. 2 (royal assent 13 March 1975; 1974 and later taxation years). Added paragraph (l.1): the employer’s unemployment insurance premium and Canada Pension Plan or provincial pension plan contribution payable by the taxpayer for an assistant or substitute whose salary was deductible under subparagraph (i)(ii).
- S.C. 1977-78, c. 1, s. 4 (royal assent 15 December 1977; 1977 and later taxation years). Raised the general deduction in paragraph (a) to “the lesser of $250 and 3%” of the aggregate.
- S.C. 1980-81-82-83, c. 48, s. 2 (royal assent 26 February 1981; 1980 and later taxation years). Replaced paragraph (j) to cover interest and capital cost allowance on “an aircraft that is required for use” in the duties as well as an automobile; added subsection 8(9), limiting deductions for travel in an aircraft owned or rented by the taxpayer to an amount “reasonable in the circumstances having regard to the relative cost and availability of other modes of transportation”; and added subsections 8(10) and (11), a deduction for a Canadian resident employed by a “specified employer” who for more than six consecutive months performed all or substantially all of the duties outside Canada.
- S.C. 1980-81-82-83, c. 140, s. 2 (royal assent 30 March 1983; 1981 and later taxation years). Added paragraph (n), amounts repaid under an arrangement requiring the taxpayer to reimburse amounts received for a period in which the duties were not performed, to the extent included in income and not exceeding the amounts received.
- S.C. 1984, c. 1, s. 3 (royal assent 19 January 1984). Subsection 3(1) raised the general deduction in paragraph (a) to “the lesser of $500 and 20%” for 1983 and later years, the figure in force when Tax Reform 1987 proposed its repeal; subsection 3(2) repealed subsections 8(10) and (11), the overseas employment deduction, for 1984 and later years.
- S.C. 1986, c. 6, s. 3 (royal assent 13 February 1986; 1985 and later taxation years). Added subparagraph (i)(vi), dues to a parity or advisory committee or similar body required under provincial law, and extended subsection 8(5) to those dues.
- S.C. 1986, c. 55, s. 2 (royal assent 19 December 1986; 1986 and later taxation years). Added paragraph (m.1), registered pension plan contributions over $3,500 for current service under a defined benefit plan, and paragraph (o), the deduction where rights to deferred amounts under a salary deferral arrangement are extinguished, equal to the deferred amounts previously included under paragraph 6(1)(a) less amounts received, receivable or previously deducted.
- R.S.C. 1985, c. 1 (5th Supp.), s. 8. The revision carried section 8 forward and is the base of the current source note. The text as originally enacted was not examined.
- S.C. 1988, c. 55, s. 2 (royal assent 13 September 1988; 1988 and later years unless noted). Subsection 2(1) repealed paragraphs 8(1)(a), (k) and (l), removing the general deduction and moving unemployment insurance premiums and CPP contributions out of section 8 into tax credits (the English scan is defective; the French text reads “Les alinéas 8(1)a), k) et l) de la même loi sont abrogés”). Subsection 2(1.1) amended subparagraph (h)(iii); subsection 2(2) added paragraph (p), musical instrument costs; subsection 2(3) repealed subsection 8(3); subsection 2(5) added a new subsection 8(10) (the earlier subsection 8(10) having been repealed in 1984), requiring a prescribed form signed by the employer for deductions under paragraph (f) or (h) or subparagraph (i)(ii) or (iii). Subsection 2(4), for 1984 and later years, amended paragraph 8(5)(b) to allow dues for professional or malpractice liability insurance needed to maintain a statutory professional status.
- S.C. 1990, c. 35, s. 2 (royal assent 27 June 1990). Added paragraph (m.2), contributions to a retirement compensation arrangement paid to a resident custodian where the taxpayer was required to contribute and contributed no more than any other person in respect of the taxpayer, or the plan is a revoked registered pension plan, for 1989 and later years (subsection 2(9)); replaced paragraph (m) with the deduction “by reason of subsection 147.2(4)”, for 1986 and later years with a transitional reading to 1990 (subsection 2(7)); and repealed paragraph (m.1) and subsection 8(8) for 1991 and later years (subsections 2(8) and (11)).
- S.C. 1991, c. 49, s. 5 (royal assent 17 December 1991), as revised by S.C. 1994, c. 7, Sch. II, s. 5. Subsection 5(1) added subparagraph (f)(vii), amounts whose payment reduced the paragraph 6(1)(e) standby charge, for 1990 and later years; subsections 5(2) to (5) split motor vehicle expenses out of paragraph (h) into new paragraph (h.1), extended paragraph (j) to (h.1) and replaced “automobile” with “motor vehicle”, for 1988 and later years (subsection 5(10)); subsection 5(6) enacted paragraph (q), artists’ employment expenses, for amounts paid after 1990; subsection 5(7) re-enacted subsection 8(10) to cover (h.1), requiring the taxpayer to file with the return “a prescribed form signed by the taxpayer’s employer certifying that the conditions set out in that provision were met”, for 1988 and later years; and subsection 5(8) added subsection 8(12), “Return of employee shares by trustee”, for 1988 and later years, and subsection 8(13), the work-space-in-home rule, for 1991 and later years (subsection 5(12)). The split was therefore enacted in 1991 with retroactive effect, not by the 1988 Act. Read in the original sessional volume and in the 1994 revision.
- S.C. 1993, c. 24, s. 2 (royal assent 10 June 1993), as revised by S.C. 1994, c. 7, Sch. VIII, s. 2. Added clause 8(1)(m.2)(iii)(C), “the plan is a prescribed plan or arrangement”, for 1992 and later years. The Income Tax Amendments Revision Act, S.C. 1994, c. 7 (Bill C-15, royal assent 12 May 1994), re-enacted in revised form the amendments in nine Acts passed after 30 November 1991 that had been drafted against the pre-revision text; its explanatory note says the revised amendments “must not be interpreted as new law, but as being identical in substance with the amendments in the original amending Acts”. That is why the Justice Laws source note cites 1994, c. 7 rather than the 1991 and 1993 Acts.
- S.C. 1994, c. 21, s. 4 (Bill C-27; royal assent 15 June 1994; 1992 and later years). Rewrote the opening words of paragraph (m.2) to cover a prescribed plan established by an enactment of Canada or a province, repealed clause (m.2)(iii)(C), and added paragraph (o.1), the deduction under subsection 144(9) for employees profit sharing plan amounts.
- S.C. 1996, c. 23, s. 171 (Employment Insurance Act; royal assent 20 June 1996). Substituted the Employment Insurance Act in subparagraph 8(1)(l.1)(i).
- S.C. 1998, c. 19, s. 69 (Bill C-28; royal assent 18 June 1998). Added subparagraph (i)(vii), dues to a professions board required under provincial law, and amended subsection 8(5) to refer to it (1996 and later years); carved top-up disability arrangements out of paragraph (n) and enacted paragraph (n.1), reimbursement of disability payments (arrangements entered into or payments made after 10 August 1994).
- S.C. 1999, c. 22, s. 4 (Bill C-72; royal assent 17 June 1999; 1998 and later years). Inserted a new paragraph 8(1)(a), “Volunteers’ deduction”, of up to $1,000 a year received from a government, municipality or public authority by volunteer ambulance technicians, firefighters and search-and-rescue or emergency volunteers; re-enacted subsection 8(10) and re-enacted subsection 8(12) as “Forfeiture of securities by employee”.
- S.C. 2000, c. 12, s. 142 and Sch. 2 (Modernization of Benefits and Obligations Act, Bill C-23; royal assent 29 June 2000). Replaced “spouse” with “spouse or common-law partner”, including in subparagraph 8(1)(e)(ii), for 2001 and later years.
- S.C. 2001, c. 17, s. 3 (Income Tax Amendments Act, 2000; royal assent 14 June 2001). Subsection 3(1) repealed the volunteers’ paragraph (a), with effect from 1998, the same Act adding subsection 81(4) for payments for volunteer services; paragraph (a) has thus been repealed twice, in 1988 and in 2001. Subsection 3(2) replaced paragraph (c) for 2001 and later years, adding utilities and the cap of the greater of $1,000 a month (to ten months) and one-third of remuneration. Subsection 3(3) extended subsection 8(10) to paragraph (c).
- S.C. 2002, c. 9, s. 21 (Budget Implementation Act, 2001; royal assent 27 March 2002). Enacted paragraph (r), the apprentice mechanics’ tool deduction, with a threshold of the greater of $1,000 and 5 per cent of apprenticeship income, subsection 8(6) (definitions) and subsection 8(7) (cost reduction), for eligible tools acquired after 2001.
- S.C. 2007, c. 2, s. 2 (Budget Implementation Act, 2006, No. 2; royal assent 21 February 2007). Enacted paragraph (s), the tradesperson’s tool deduction, as the lesser of $500 and the cost of eligible tools over $1,000, and subsection 8(6.1), for tools acquired on or after 2 May 2006; extended subsection 8(6) to programs established under the laws of Canada; excluded electronic communication and data processing devices; replaced subsection 8(7); and linked the paragraph (r) threshold to the Canada employment amount in subsection 118(10).
- S.C. 2012, c. 31, s. 3 (Jobs and Growth Act, 2012; royal assent 14 December 2012). Added paragraph (o.2), excess EPSP amounts, for 2012 and later years.
- S.C. 2013, c. 34, s. 172 (Technical Tax Amendments Act, 2012; royal assent 26 June 2013). Added paragraph (l.2), the employer’s premium under the Quebec Act respecting parental insurance on an assistant’s pay, for 2006 and later years; widened paragraph (b) from salary or wages owed by the employer to legal expenses “to collect, or to establish a right to, an amount owed” that would be employment income if received, for amounts paid after 2000; and extended paragraph (i) to amounts paid on the taxpayer’s behalf that are included in income.
- S.C. 2022, c. 10, s. 2 (Budget Implementation Act, 2022, No. 1; royal assent 23 June 2022). Enacted paragraph (t) and subsection 8(14), the labour mobility deduction, for 2022 and later years, with a cap of $4,000 and a distance threshold of 150 km.
- S.C. 2023, c. 26, s. 3 (Budget Implementation Act, 2023, No. 1; royal assent 22 June 2023). Raised the paragraph (s) cap from $500 to $1,000 for 2023 and later years; re-expressed the paragraph (r) threshold by reference to “the first dollar amount referred to in paragraph (s)”; and reworded subsection 8(10), which had required “a prescribed form, signed by the taxpayer’s employer certifying that the conditions … were met”, so that the employer “confirms in prescribed form” that the conditions were met “and the form is filed with the taxpayer’s return of income for the year”. Subsection 3(4) applies only subsections 3(1) and (2) (the paragraph (r) and (s) changes) “to the 2023 and subsequent taxation years”; subsection 3(3), which replaced subsection 8(10), has no application rule and so took effect on royal assent.
- S.C. 2024, c. 17, s. 4 (Budget Implementation Act, 2024, No. 1; royal assent 20 June 2024). Amended only the French version of subparagraph 8(1)(f)(vi), the closing words of paragraph (g) and the opening words of paragraph (i); the English point-in-time versions for 2023 and 2024 differ only in the history note.
- S.C. 2026, c. 22, ss. 2 and 5 (Spring Economic Update 2026 Implementation Act, Bill C-30, 45th Parliament, 1st Session; royal assent 18 June 2026). Subsection 2(1) replaced “$4,000” with “$10,000” in subparagraph 8(1)(t)(i); subsection 2(2) replaced subparagraph 8(14)(c)(v), reducing the distance to “not less than 120 kilometres greater” and correcting “referred in” to “referred to in”; subsection 2(3) applies both changes “to the 2026 and subsequent taxation years”. Section 5 added paragraph 117.1(2)(b.1), indexing “the amount of $10,000 referred to in subparagraph 8(1)(t)(i), for a taxation year that begins after 2026”. A comparison of the version in force from 20 June 2024 to 17 June 2026 with the version from 18 June 2026 shows no other change. The Library of Parliament’s legislative summary cites “section 177.1(2)” for the indexing; the enacted text says 117.1(2).
- Current consolidation. Justice Laws HTML, “Act current to 21 September 2026, last amended 18 June 2026”. The source note reads: R.S., 1985, c. 1 (5th Supp.), s. 8; 1994, c. 7, Sch. II, s. 5, Sch. VIII, s. 2, c. 21, s. 4; 1996, c. 23, s. 171; 1998, c. 19, s. 69; 1999, c. 22, s. 4; 2000, c. 12, s. 142; 2001, c. 17, s. 3; 2002, c. 9, s. 21; 2007, c. 2, s. 2; 2012, c. 31, s. 3; 2013, c. 34, s. 172; 2022, c. 10, s. 2; 2023, c. 26, s. 3; 2024, c. 17, s. 4(F); 2026, c. 22, s. 2. Paragraph (a) shows as repealed by 2001, c. 17, s. 3(1); there are no paragraphs (k), (l) or (m.1) and no subsections (3) or (8).
The next tab reads the provision as it now stands, subsection by subsection, against the case law and the CRA’s administrative positions.
Interpretation and application
In plain terms, an employee may deduct only what section 8 lists, and each item comes with its own conditions, usually that the employment contract required the employee to pay the cost and that the employer confirms this on a form. The discussion below takes the provision subsection by subsection, in numerical order, with the paragraphs of subsection 8(1) first and the general limitation in subsection 8(2) after them.
Subsection 8(1): the opening words
Subsection 8(1) allows “such of the following amounts as are wholly applicable to that source or such part of the following amounts as may reasonably be regarded as applicable thereto”. The words track the source rule in paragraph 4(1)(a). Each office or employment is its own source, so an outlay belongs to the employment to which it relates, and an outlay that serves both the employment and something else, such as a car or a home, must be apportioned. Where a taxpayer holds several employments the rule has bite: in Bykov v. The King, 2024 TCC 36, aff’d 2025 FCA 103, a nurse working for three agencies could not add the home-office percentages on the three employers’ T2200 forms together, because the “principally” test applies to each employment separately (para. 47). The taxpayer must also prove the amounts; the claims in Bykov failed on quantum, the T2200s not establishing it (2024 TCC 36, paras. 72 to 75; 2025 FCA 103, paras. 7 to 12).
Paragraph 8(1)(b): legal expenses
The paragraph allows legal expenses paid in the year “to collect, or to establish a right to, an amount owed to the taxpayer that, if received by the taxpayer, would be required by this Subdivision to be included in computing the taxpayer’s income”. Since the 2013 amendment (amounts paid after 2000) the amount need not be salary owed by the employer; it is enough that it would be employment income. Success is irrelevant: the purpose of the fees governs, and “it is not necessary or relevant to determine whether the claim is well founded in law, or is likely to succeed” (Loo v. Canada, 2004 FCA 249, para. 5; Podlesny v. The Queen, 2008 TCC 591, para. 16). Fees to protect a professional qualification or livelihood are outside the paragraph, because the proceedings could not establish or collect salary owed (Blagdon v. Canada (Attorney General), 2003 FCA 269, paras. 4 to 5).
The paragraph is nonetheless narrow. It covers the collection of unpaid pay or a dispute with the employer over the amount owed, not the defence of a derivative damages action in which remuneration is merely an element (Fenwick, paras. 7, 8 and 10 to 11). “The only deduction that is permitted is for legal expenses incurred in relation to amounts that have not yet been received” (Barkley v. Canada, 2021 FCA 5, para. 31), so the costs of keeping amounts already paid are excluded (para. 35), displacing Chagnon v. The Queen, 2011 TCC 268 (Barkley, paras. 23 to 28; see also Catlos v. The Queen, 2018 TCC 177, para. 28). There must be an amount owed for services performed: a retired judge’s costs of seeking a declaration that he could sit past 70 failed (Clément v. The Queen, 2020 TCC 33, paras. 18 to 29). Damages for wrongful dismissal are generally a retiring allowance, and the fees to obtain them fall under paragraph 60(o.1), not paragraph 8(1)(b) (archived IT-99R5, paras. 22 to 28); where a claim combines unpaid wages and damages in lieu of notice, the fees should be apportioned between the heads.
Paragraph 8(1)(c): clergy residence
The deduction has a status test, a function test and a quantum rule, and the two tests must not be confused (Canada v. Lefebvre, 2009 FCA 307, paras. 20 and 22). The status test requires “a member of the clergy or of a religious order or a regular minister of a religious denomination”; what must have some permanence is the person’s status under a legitimate appointment, not the position (para. 26), so lay pastoral agents on mandates terminable at will do not qualify (para. 49; Canada v. Proulx, 2010 FCA 261; Melo Pereira v. The Queen, 2006 TCC 300). The function test requires that the taxpayer be in charge of, or ministering to, a diocese, parish or congregation, or “engaged exclusively in full-time administrative service by appointment of a religious order or religious denomination”. “Ministering” is read broadly, so chaplains, missionaries and a minister of music have qualified (Kraft and McGorman, as characterised in Lichtman v. The Queen, 2017 TCC 252, paras. 115 to 121; Austin v. The Queen, 99 DTC 710 (T.C.C.), paras. 32 to 37; Moerman v. The Queen, 2015 TCC 295, para. 20), but a “congregation” requires regularized worship in an institutional setting, so rabbis teaching at a day school failed, and volunteer ministry outside the employment does not count (Lichtman, paras. 194 to 215).
The claimant needs “remuneration … from the office or employment” in the qualifying position, which is why Schroeder v. The King, 2024 TCC 56, turned entirely on whether an RCMP chaplain paid by a foundation was an employee (paras. 18 to 29 and 37); CPP disability benefits are not such remuneration (Parker v. The Queen, 2015 TCC 86, paras. 28 and 36 to 37). Under subparagraph (iii), the deduction equals the section 6 benefit, including utilities, for accommodation occupied “in the course of, or because of” the office, which requires a strong causal connection (Williams v. The Queen, 2011 TCC 66, paras. 16 to 20). Under subparagraph (iv), it is the rent and utilities paid, or the fair rental value of a residence owned by the taxpayer or the taxpayer’s spouse or common-law partner, limited to the greater of $1,000 a month (to ten months) and one-third of the remuneration, and reduced by amounts deducted by any individual for the same accommodation, such as a spouse’s claim (Williams, paras. 14 and 24). The two subparagraphs are alternatives (Hoch v. The Queen, 2019 TCC 99, paras. 16 to 22). The employer confirms the conditions on Form T1223 (subsection 8(10)).
Paragraphs 8(1)(d), (e) and (g): teachers, railway and transport employees
Paragraph (d) allows up to $250 paid to the Canadian Education Association fund for Commonwealth exchange teachers. Paragraph (e) allows railway employees’ meals and lodging while working away from their ordinary residence as relieving telegraphers, station agents or on maintenance and repair, or away from the municipality and metropolitan area of the home terminal at a location from which they could not reasonably return daily to a self-contained domestic establishment in which they support a spouse, common-law partner or dependant. Paragraph (g) gives employees of a person whose principal business is passenger or goods transport a parallel deduction for meals and lodging while regularly travelling on the employer’s vehicles away from the municipality and metropolitan area of their reporting establishment. Both deductions are limited to unreimbursed amounts. Neither is listed in subsection 8(10) or subject to subsection 8(4); the CRA administers them through Form TL2, certified by the employer, with a simplified meal rate of $23 per meal including tax, to three meals a day (Guide T4044 (2025)). Section 67.1 limits the meals to 50 per cent, or 80 per cent for long-haul truck drivers.
Paragraph 8(1)(f): sales expenses
Paragraph (f) is the broadest employee deduction: amounts expended “for the purpose of earning the income from the employment”. It requires employment “in connection with the selling of property or negotiating of contracts for the taxpayer’s employer”, a contractual requirement to pay one’s own expenses, ordinary performance of the duties away from the employer’s place of business, remuneration “in whole or part by commissions or other similar amounts fixed by reference to the volume of the sales made or the contracts negotiated”, and no travel allowance excluded under subparagraph 6(1)(b)(v). A nurse paid per patient visit, who neither sold property nor negotiated contracts, was outside the paragraph; payment by the visit did not bring the duties within it (Bykov v. The King, 2024 TCC 36, paras. 37 to 40). The deduction cannot exceed commissions received in the year, and expenses of a year without commissions cannot be carried forward (Rosen v. The King, 2025 TCC 6, paras. 65 to 68). Capital outlays are excluded except under paragraph (j), as are outlays that paragraph 18(1)(l) would deny a business and amounts that reduced the standby charge. In Gifford v. Canada, 2004 SCC 15, a client list bought from a colleague, and the interest on the money borrowed for it, were on account of capital (paras. 19 to 23, 26 and 36). Section 67.1 and subsection 8(4) apply to meals.
The contractual requirement is a question of fact. A tacit understanding can suffice (Tulman v. The Queen, 2014 TCC 140, para. 30), and in Verrier v. Canada, [1990] 3 F.C. 3 (C.A.), with no written contract, the undisputed evidence established the requirement to pay, and a car salesman who would be dismissed for not selling enough, where both sides recognized that enough cars could be sold only by working away from the showroom, was ordinarily required to work away, the trial judge’s view that the activities were means of his own choosing being reversed; but “a smart economic choice is not a contractual obligation” (Samotus, para. 24). A T2200 answer that the employee had to pay her own expenses was “sufficient” in Aboud Schofield v. The King, 2022 TCC 142, para. 30, where recruiter fees were business development, not capital (paras. 31 and 34 to 37), although Samotus treats a mistaken T2200 as prima facie evidence only (para. 26). The purpose test is objective, so everyday work clothing is personal (Perera v. The Queen, 2014 TCC 280, paras. 16, 22 and 24), and a salesman working from home travels in the course of the employment from home (Emond v. The Queen, 2011 TCC 142, para. 10).
Subparagraphs 8(1)(h)(iv) and (h.1)(iv) deny travel and vehicle deductions to a taxpayer claiming under paragraph (f), so the salesperson chooses each year between paragraph (f), wider but capped at commissions, and paragraphs (h) and (h.1), uncapped but confined to travel. Paragraph (j) is available on either route and sits outside the cap.
Paragraphs 8(1)(h) and (h.1): travel and motor vehicle expenses
Both paragraphs require that the taxpayer was “ordinarily required to carry on the duties … away from the employer’s place of business or in different places” and “required under the contract of employment to pay” the travel or motor vehicle expenses; paragraph (h) then allows travel costs other than vehicle expenses, and paragraph (h.1) vehicle expenses, “for travelling in the course of the office or employment”. The contract must oblige the employee to pay, a choice is not enough, and CRA statements do not displace judicial interpretation (Barry v. Canada, 2014 FCA 280, paras. 10 to 11); the term may be implied where the employer will not pay the full cost of required travel (Rozen v. Canada, 85 DTC 5611 (F.C.T.D.), as characterised in Barry, para. 13). A construction site is the employer’s place of business if it is in the nature of a permanent establishment of the employer (Martorelli v. The Queen, 2010 TCC 216, para. 18, citing Champaigne v. The Queen, 2006 TCC 74, and Dionne v. Canada, 2006 FCA 79, where the Federal Court of Appeal allowed claims under (h) and (h.1) because the Crown conceded the facts could not be distinguished from Champaigne (paras. 3 to 5)), and a worker driving to a single site who did not show otherwise failed (Martorelli, paras. 15 to 21). The paragraph does not require that most duties be performed away, only that the employee be ordinarily required to perform them in different places (Mason v. The Queen, 2022 TCC 65, paras. 27 to 29).
Home-to-work travel is the hardest question. The expense must be incurred while performing the duties, so a judge’s drive to the courthouse was personal (Hogg v. Canada, 2002 FCA 177, paras. 9 to 15), as were commuting to an assigned workplace (Barry, paras. 14 to 15), a pilot’s travel to his foreign base (Brown v. The Queen, 2012 TCC 452, paras. 5 to 12) and a casual engineer’s travel to each posting (Bingley v. The Queen, 2010 TCC 34, paras. 7 to 9). Travel from home is in the course of the employment where the employee is ordinarily required to work in different places (Rousseau v. The Queen, 2006 TCC 552, paras. 31 to 34) or where the employer requires the home to be a place of work (Gardner v. The Queen, 2020 TCC 108, paras. 7 and 12 to 13; Mason, paras. 31 to 34 and 37 to 39). The CRA treats travel between home, including a home office, and a regular workplace as personal, and gives Gardner little weight as an informal procedure decision (technical interpretation 2023-0983051C6).
A reasonable per-kilometre allowance excluded under subparagraph 6(1)(b)(vii.1) bars paragraph (h.1) even if the CRA might have accepted a higher rate (Bykov, 2024 TCC 36, paras. 54 to 55 and 61 to 62); an allowance not based solely on kilometres is unreasonable under subparagraph 6(1)(b)(x), taxable, and leaves the deduction open (Veinot v. The Queen, 2010 TCC 112, paras. 19 to 25; Bykov, paras. 63 to 69). The CRA’s view is that an employee cannot refuse a reasonable allowance to claim actual costs (technical interpretation 2006-0185451E5).
Paragraph 8(1)(i): dues and other expenses of performing duties
Paragraph (i) covers, to the extent not reimbursed, amounts paid by the taxpayer, or on the taxpayer’s behalf and included in income, for annual professional dues “necessary to maintain a professional status recognized by statute”; office rent, or an assistant’s or substitute’s salary, that the contract required; “supplies that were consumed directly in the performance of the duties” that the contract required the employee to supply and pay for; union and public service association dues, including dues withheld for a union of which the taxpayer is not a member; and dues to a parity or advisory committee or professions board required by provincial law. A statute must recognize a professional status implying special skills or qualifications (The Queen v. Swingle, [1978] 1 F.C. 743 (T.D.)); the CRA adds that membership must be mandatory and excludes initiation fees, special assessments, examination and licence fees (Folio S2-F2-C1). Rent and supplies require a contractual requirement: a cell phone the employer did not require failed (Barry, paras. 16 to 17), while a superintendent who had to decide school closures from home at 4:30 a.m. had an implied requirement to keep a home office (Landry v. The Queen, 2007 TCC 383, paras. 26 to 32). The CRA does not treat mortgage interest, capital cost allowance, property taxes or home insurance as rent or supplies (technical interpretation 2000-0022015). Subsection 8(10) applies to subparagraphs (ii) and (iii) only.
Paragraph 8(1)(j): motor vehicle and aircraft costs
Paragraph (j) is dependent: its only condition is that a deduction may be made under paragraph (f), (h) or (h.1), and the employment share allowed under those paragraphs fixes the share of interest and capital cost allowance (Ragsdale v. The Queen, 2008 TCC 232, paras. 24 to 25 and 34 to 36; Bykov, para. 70). It allows interest on money borrowed to acquire a motor vehicle used, or an aircraft required, in the duties, and capital cost allowance under subsection 1100(1) of the Regulations at 30 per cent for Classes 10 and 10.1. The passenger vehicle limits apply through the cost ceiling in paragraph 13(7)(g) and subsection 7307(1) of the Regulations ($38,000 plus tax after 2024), the interest limit in section 67.2 ($350 a month after 2023) and the lease limit in section 67.3 ($1,100 a month after 2024); lease payments are claimed under paragraph (f) or (h.1). Paragraph (j) is the only exception to the capital bar in subparagraph (f)(v) (Gifford, para. 15).
Paragraphs 8(1)(l.1) and (l.2): payroll costs of an assistant
Where the contract requires the employee to pay an assistant or substitute, so that subparagraph 8(1)(i)(ii) applies, the employee is the assistant’s employer for payroll purposes. Paragraph (l.1) allows the employer’s EI premium and CPP or Quebec Pension Plan contribution on the assistant’s pay, and paragraph (l.2) the employer’s premium under the Quebec Act respecting parental insurance. Both depend on a deduction being available under subparagraph (i)(ii) “in respect of that individual”.
Paragraphs 8(1)(m) and (m.2): pension and RCA contributions
Paragraph (m) allows the registered pension plan contributions deductible “by reason of subsection 147.2(4)”, which governs current and past-service contributions and their limits; the placement in section 8 means the deduction reduces employment income, at line 20700. Paragraph (m.2) allows contributions to a prescribed plan established by an enactment of Canada or a province, or to a retirement compensation arrangement paid to a resident custodian where either the employee was required to contribute and contributed no more than any other person in respect of the employee, or the plan is a revoked registered pension plan and the contribution followed its last registered terms.
Paragraphs 8(1)(n) and (n.1): salary and disability repayments
Paragraph (n) allows amounts repaid under an arrangement requiring reimbursement of amounts received “for a period throughout which the taxpayer did not perform the duties”, to the extent included in income and not exceeding the amounts received for that period. The CRA reads it as inapplicable where duties were performed inadequately (technical interpretation 2005-0116061E5). Top-up disability arrangements fall instead under paragraph (n.1), described in the Terms glossary under subsection (1).
Paragraphs 8(1)(o), (o.1) and (o.2): forfeited and EPSP amounts
Paragraph (o) reverses salary deferral amounts taxed under paragraph 6(1)(a) but never received, once every right under the arrangement is extinguished, by the excess of the amounts included over amounts received, amounts still receivable and amounts already deducted. Paragraph (o.1) allows the amount deductible under subsection 144(9), which concerns employees profit sharing plan allocations later forfeited. Paragraph (o.2) removes an excess EPSP amount, defined in subsection 207.8(1), from employment income, except to the extent the Part XI.4 tax on it is waived or cancelled, so that it is taxed under Part XI.4 instead. None of these paragraphs concerns deferred share units or disability repayments.
Paragraphs 8(1)(p) and (q): musicians and artists
Paragraph (p) allows a musician required by the employment to provide an instrument the costs of maintaining, renting and insuring it and capital cost allowance on it, not exceeding the income from that employment; the CRA does not allow the purchase price itself (Guide T4044 (2025)). Paragraph (q) allows employed artists, composers, performers and members of a certified professional artists’ association expenses incurred to earn the artistic income, to the extent not deductible in a preceding year, capped at the lesser of $1,000 and 20 per cent of the artistic employment income, less amounts deducted under paragraphs (j) and (p) for the same activities. Paragraph (q) is not listed in subsection 8(10).
Paragraphs 8(1)(r) and (s): tools
Paragraph (s) allows a tradesperson the lesser of $1,000 and “A - $1,000”, A being the lesser of the cost of eligible tools acquired in the year and the employment income as a tradesperson plus net apprenticeship grants. The threshold in the formula is indexed under paragraph 117.1(2)(b), so the CRA uses $1,471 for 2025; the $1,000 maximum, raised from $500 by S.C. 2023, c. 26 for 2023 and later years, is not indexed. The threshold reflects the policy that the first slice of tool costs is covered by the Canada employment amount in subsection 118(10). Paragraph (r) gives an eligible apprentice mechanic a larger deduction, limited to income, of (A - B) + C: A is the cost of eligible tools acquired in the year (or in the last three months of the preceding year on first employment as an apprentice), B is the lesser of A and the greater of the first dollar amount in paragraph (s) plus the subsection 118(10) amount and 5 per cent of apprentice income plus net grants, and C is the unused balance carried forward.
Paragraph 8(1)(t): labour mobility deduction
An eligible tradesperson may deduct the lesser of $10,000 (for 2026 and later years; $4,000 for 2022 to 2025) and the total of the temporary relocation deductions for the year. The defined terms are set out in the Terms glossary under subsection (14). The deduction is limited per relocation by half the income earned at the temporary work locations and overall by the cap; the distance test compares the ordinary residence and the temporary lodging with each work location, and must be met for each, at 120 km from 2026. The paragraph is not listed in subsection 8(10), so no T2200 is required, but the tradesperson needs evidence of distances, the 36-hour absence and the continued availability of the ordinary residence. The CRA’s Guide T4044 (2025) and Budget 2022 page still state $4,000 and 150 km and should not be applied to 2026 claims. No decision on the paragraph was found.
Subsection 8(2): the general limitation
“Except as permitted by this section, no deductions shall be made in computing a taxpayer’s income for a taxation year from an office or employment.” An employee “could only make deductions, as a result of s. 8(2), if the deduction was expressly allowed under s. 8” (Gifford, para. 11), and the right to a deduction “must be found in section 8” (Barkley, paras. 18 to 19); Parliament “has chosen to restrict the deductions available to employees”, and nothing supports reading a deduction more broadly than its words (para. 36). The contrast with section 9 (Gifford, paras. 13 to 14; Aboud Schofield, para. 6) drives taxpayers to claim business status (Gifford, para. 17). That line is drawn by the common law test: the “total relationship of the parties” (Wiebe Door), the central question being whether the worker performs the services “as a person in business on his own account” (Sagaz, para. 47), asked first through the parties’ intent and then through the objective reality (Connor Homes, paras. 39 to 42; Schroeder, paras. 23 to 29 and 45), and it can cut either way: employment closes the business deductions but opens deductions, such as the clergy residence deduction, that have no business counterpart. “The matter of employment expenses is tightly constrained under the Act” (Ross v. The Queen, 2018 TCC 165, para. 13). The limits in Subdivision F that apply “in computing income”, such as sections 67 and 67.1, still apply; section 18 does not, except where subparagraph (f)(vi) imports paragraph 18(1)(l). Deductions outside Subdivision A, such as paragraph 60(o.1), are taken in computing net income, not employment income.
Subsection 8(4): meals
A meal counts towards a deduction under paragraph (f) or (h) only if consumed while the duties required the taxpayer to be away, for at least twelve hours, from the municipality and metropolitan area of the employer’s establishment to which the taxpayer ordinarily reported. The rule applies only to paragraphs (f) and (h); meals inside the Toronto area failed it (Richardson v. The Queen, 2018 TCC 135, para. 17). It is a threshold, and the 50 per cent limit in section 67.1 applies on top of it.
Subsection 8(5): dues not deductible
Dues under subparagraphs (i)(i), (iv), (vi) and (vii) are not deductible to the extent levied for a superannuation fund or plan, for annuities, insurance or similar benefits (other than professional or malpractice liability insurance necessary to maintain a statutory professional status), or for any other purpose not directly related to the ordinary operating expenses of the body. A union or professional receipt may therefore need to be split.
Subsections 8(6), (6.1) and (7): eligible tools and their cost
Subsections 8(6) and (6.1) define the eligible apprentice mechanic and the eligible tool, set out in the Terms glossary under subsection (6); the employer’s certification is required by these subsections, not by subsection 8(10). Subsection 8(7) deems the cost of a tool whose cost entered the description of A in paragraph (r) or (s) to be K - (K x L/M), removing the proportion deducted so that it is not counted again on disposition or for capital cost allowance; Guide T4044 (2025) includes in income any excess of proceeds over the adjusted cost.
Subsection 8(9): aircraft
“Notwithstanding any other provision of this Act”, amounts deductible under paragraph (f), (h) or (j) for travelling in an aircraft owned or rented by the taxpayer may not exceed an amount reasonable having regard to the relative cost and availability of other modes of transportation. The marginal note says “Presumption”, but the rule is a reasonableness cap.
Subsection 8(10): the employer’s certificate
An amount otherwise deductible under paragraph (c), (f), (h) or (h.1) or subparagraph (i)(ii) or (iii) “shall not be deducted unless the taxpayer’s employer confirms in prescribed form that the conditions set out in the applicable provision were met in the year in respect of the taxpayer and the form is filed with the taxpayer’s return of income for the year”. The forms are T2200 and, for clergy, T1223. The CRA’s administrative practice is that the employee keeps the form and produces it on request, and it “will accept an electronic signature” by the employer on either form (Guide T4044 (2025)), and it should be obtained when the return is prepared (Samotus, para. 7). The certificate is a precondition, not proof: without diligent efforts to obtain one its absence “is fatal” (Richardson v. The Queen, 2018 TCC 135, paras. 7 to 10), but it “is not determinative as to the conditions of employment if the evidence leads to different conclusions” (para. 6; Le Bouthillier v. Canada, 2021 FCA 119, para. 5; Samotus, para. 26). For 2020 to 2022 the CRA allowed a flat-rate home office claim of $2 a day without a T2200, and a shorter Form T2200S; from 2023 a T2200 is required.
Subsection 8(11): GST/HST rebate
For sections 6 and 8, a GST/HST rebate is deemed not to be a reimbursement, so the employee rebate under section 253 of the Excise Tax Act does not defeat the “not reimbursed” conditions. Subsection 6(8) brings the rebate into employment income in the year received or, for the capital cost of a vehicle, aircraft or instrument, treats it as assistance under subsection 13(7.1).
Subsection 8(12): forfeiture of securities
Where an employee is deemed by subsection 7(2) to have disposed of a security held by a trust, the trust disposes of it to the issuer because vesting conditions were not met, and the issuer pays no more than was paid for it, the employee may deduct the subsection 7(1) benefit previously included, less any paragraph 110(1)(d) or (d.1) deduction, and the gain or loss is deemed nil with no deemed dividend under section 84. The rule reverses an employment benefit that was taxed but never enjoyed.
Subsection 8(13): work space in the home
Subsection 8(13) creates no deduction; it limits deductions under paragraphs (f) and (i). The work space must be the place where the individual “principally” performs the duties, meaning more than 50 per cent, tested employment by employment (Bykov, paras. 44 and 47), or be used exclusively for the employment and regularly and continuously for meeting customers or others, which requires both elements (para. 48; Landry). The deduction cannot exceed the employment income, and an excess denied for that reason alone is carried forward indefinitely. The CRA administers “principally” as more than 50 per cent of the time for at least four consecutive weeks and accepts a written or verbal agreement, or a voluntary formal telework arrangement, as the requirement (technical interpretation 2021-0914351C6). A salaried employee may claim a share of rent, utilities, minor maintenance and home internet; a commission employee may add property tax and insurance; mortgage interest and capital cost allowance are excluded for both (Guide T4044 (2025)). The share is computed by area and, for a shared space, by hours of use out of 168 a week. A hybrid employee at home two days a week does not meet the principal-place test.
Subsection 8(14): labour mobility definitions
Subsection 8(14) supplies the definitions for paragraph 8(1)(t), set out in the Terms glossary under subsection (6): the work locations must be in one locality, the expenses may be incurred in the year, the previous year or before 1 February of the following year, reimbursed or assisted expenses are excluded, and the ordinary residence must stay available and unrented.
The next tab explains why the list is closed and what Parliament and the Department of Finance have said about it.
Policy purpose and commentary
In plain terms, employees have always been allowed fewer deductions than businesses, and Canada has tried three ways of easing that: allowing actual expenses for particular trades, a flat deduction, and a tax credit. This tab traces that debate and gives what the government’s own figures say the deductions cost.
The Royal Commission on Taxation (Carter Commission) found in 1966 that the existing rules discriminated unfairly between employment and business income and concluded that “the most equitable course would be to treat employment income on the same basis as income from a business or profession”, with expenses deductible “if reasonably related to the earning of income” (Report, vol. 3, ch. 14, pp. 312 to 313). For administrative reasons it paired that rule with “an optional deduction of 3 per cent of gross employment income, up to a maximum deduction of $500”, and recommended an express denial of commuting and club costs (recommendations 23 and 24, p. 321). The 1969 White Paper, E.J. Benson, Proposals for Tax Reform, paras. 2.10 to 2.13, accepted the diagnosis, calling the limited deductions “a long-standing grievance on the part of working men”, but proposed only a general deduction “of 3 per cent of gross employment income up to a maximum of $150 per year”. The 1971 legislation followed the White Paper: it kept the closed list in subsection 8(2) and added paragraph 8(1)(a), which, in the Department of Finance’s Summary of 1971 Tax Reform Legislation, “attempts to bring the calculation of income for the two groups into better balance”.
The 1987 reform removed the compromise. Tax Reform 1987: Income Tax Reform (18 June 1987) eliminated the deduction, then 20 per cent of employment income to $500, on the view that “for most taxpayers the level of the basic personal tax credit ($1,020 in 1988) more than compensates”, and estimated the revenue gain at $975 million for 1988, rising to $1,100 million for 1992. A general allowance returned in 2006 as the Canada employment credit in subsection 118(10), computed on the lesser of an indexed $1,000 and employment income; it was enacted by S.C. 2007, c. 2, s. 20(2), for 2006 and later years, with $250 in place of $1,000 for 2006 (subsection 20(3)), and originally measured employment income “if this Act were read without reference to section 8”. The tool deductions in paragraphs 8(1)(r) and (s) are tied to that amount, so that the specific deductions begin where the general credit ends.
The work-space rule became the main point of pressure after 2020. On 15 December 2020 the CRA announced a temporary flat-rate method of $2 a day worked from home, to $400, for employees who had worked from home more than 50 per cent of the time for at least four consecutive weeks, with no T2200; a tax tip of 14 February 2022 extended it to 2021 with a $500 maximum, the CRA’s “who can claim” page describes it as available for 2020, 2021 or 2022, and a CRA tax tip of 21 December 2023 confirms that it “was extended for the 2021 and 2022 tax years” and “does not apply to the 2023 tax year”. The CRA’s work-space page (modified 20 January 2026) states that “the temporary flat rate method does not apply to the 2023 and later tax years”. The flat rate was an administrative accommodation, not an amendment, and when it ended subsections 8(10) and (13) again applied in full.
The Department of Finance’s Report on Federal Tax Expenditures 2026 (26 February 2026) gives these personal income tax costs, in millions of dollars, for 2023 and 2024 (2024 projected): Canada employment credit, $3,090 and $3,325; deduction of other employment expenses, $1,225 and $1,210; union and professional dues, $1,275 and $1,325; clergy residence deduction, $105 and $110; tradespeople’s tools, $4 and $4; apprentice vehicle mechanics’ tools, $4 and $4; labour mobility deduction, $1 and $1 ($2 in 2022 and $2 projected for 2027); musicians’ costs, $1 a year; employed artists, under $0.5 million. Sales and travel expenses fall within “other employment expenses”. The 2022 edition (Part 9) found that in 2019, 779,000 filers claimed $3.82 billion of other employment expenses, 54.3 per cent of the value on detailed T777 claims relating to motor vehicles and 10.2 per cent to work space in the home, and that men were about twice as likely as women to claim them.
The treatises were not read for this page: Jinyan Li, Joanne E. Magee and J. Scott Wilkie, Principles of Canadian Income Tax Law, 11th ed. (Thomson Reuters), was verified only as a citation, and Krishna’s and Duff’s texts were not examined. An item by Rai in the Canadian Tax Journal at (2021) 69:2 CTJ 487 to 511, which search results connect with employee home office expenses, could not be opened. No proposition on this page rests on any of these works, and the commentary remains to be added by hand.
The next tab lists the decisions on which the interpretation rests.
Relevant case law
In plain terms, the courts read section 8 narrowly: an employee gets a deduction only where the words of a paragraph clearly fit, and the employer’s form helps but does not decide. The decisions below are grouped by provision. Older decisions not available on the courts’ sites are cited only as a later decision describes them, and each such entry says so.
Subsection 8(2) and the employee or business line
- Wiebe Door Services Ltd. v. M.N.R., [1986] 3 F.C. 553 (C.A.). Lord Wright’s control, ownership of tools, chance of profit and risk of loss criteria form “a four-in-one test, with emphasis always retained on … ‘the combined force of the whole scheme of operations’”; “the total relationship of the parties remains of the essence”, and the integration test applies only from the worker’s perspective (reasons of MacGuigan J.A., at 562 to 563 as cited in Connor Homes, para. 28; the report has no paragraph numbers). Under subsection 8(2) the classification decides which deduction regime applies.
- 671122 Ontario Ltd. v. Sagaz Industries Canada Inc., 2001 SCC 59. The central question is “whether the person who has been engaged to perform the services is performing them as a person in business on his own account”; control is always a factor, with the worker’s equipment, helpers, financial risk, investment and management, and opportunity for profit (para. 47); the list is non-exhaustive and there is no set formula (para. 48).
- 1392644 Ontario Inc. (Connor Homes) v. Canada (National Revenue), 2013 FCA 85. Wiebe Door and Sagaz are the leading decisions (paras. 23 and 26 to 28). Two steps: the parties’ subjective intent, shown by the contract or by conduct such as invoices and GST registration (para. 39), then whether the objective reality, tested by the Wiebe Door factors, sustains it (paras. 40 to 41); the intent should be determined first (para. 42).
- Symes v. Canada, [1993] 4 S.C.R. 695. Courts “look for objective manifestations of purpose, and purpose is ultimately a question of fact”; if an expense would have been incurred without the work “there is a strong inference that the expense has a personal purpose” (reasons of Iacobucci J., adopting Professor Brooks; the court’s text has no paragraph numbers, and Perera v. The Queen, 2014 TCC 280, paras. 16 and 22, cites them as paras. 68 and 70). Applied to “for the purpose of earning the income” in paragraph 8(1)(f).
- Gifford v. Canada, 2004 SCC 15. An employee may deduct only what section 8 expressly allows (para. 11), in contrast to the section 9 computation (paras. 13 to 14 and 17); paragraph 8(1)(j) is the only exception to the capital bar (para. 15). A client list bought from a colleague, and the interest on money borrowed to buy it, were on account of capital under subparagraph 8(1)(f)(v) (paras. 19 to 23, 26 and 36).
- Ross v. The Queen, 2018 TCC 165. A commission paid to the taxpayer’s own firm in a securities transaction was not deductible from employment income; “the matter of employment expenses is tightly constrained under the Act, per section 8” (para. 13); the T2200 said travel was not required (para. 14).
Paragraph 8(1)(b): legal expenses
- Blagdon v. Canada (Attorney General), 2003 FCA 269. A ship’s master’s legal fees for a Transport Canada inquiry into his competence, and for a wrongful dismissal suit, were not deductible, because the proceedings could not establish that salary or wages were owed or collect them (paras. 1 and 3 to 5); a broader deduction to protect a livelihood “is a matter for Parliament not the courts” (para. 5).
- Loo v. Canada, 2004 FCA 249. The purpose of the fees governs, not the merits or likely success of the claim (para. 5); salary is “owed” when the services have been performed (para. 6); the first branch covers collecting salary owed, the second a dispute over legal entitlement, including the rate payable and the terms and conditions of employment (paras. 7 to 8). A Department of Justice lawyer suing for the Toronto salary rate could deduct his fees (para. 9), unlike claims for a promotion (para. 10) or to reverse a decision affecting professional status (para. 11, citing Blagdon).
- Fenwick v. Canada, 2008 FCA 370. The paragraph “has a relatively narrow scope” (para. 7) and does not cover the defence of a derivative damages action merely because remuneration is an element of the claim (paras. 8 and 10 to 11).
- Podlesny v. The Queen, 2008 TCC 591. The test is purpose, not whether wages were owed or the claim succeeded (para. 16); the Minister having assumed the wrong test, the Crown bore the onus and the fees were allowed (paras. 17 to 23).
- Chagnon v. The Queen, 2011 TCC 268. Under the former wording, the costs of defending an employer’s claim to recover option compensation already paid were deductible (paras. 15 and 18 to 20). Displaced by Barkley.
- Catlos v. The Queen, 2018 TCC 177, aff’d sub nom. Barkley v. Canada, 2021 FCA 5. Family shareholders’ claims for disgorgement of wages, with “corporate claims with manifold remedies”, fell outside the paragraph (paras. 22 and 28).
- Barkley v. Canada, 2021 FCA 5. The right to any employment deduction “must be found in section 8” (paras. 18 to 19, 36). Under the current text “the only deduction that is permitted is for legal expenses incurred in relation to amounts that have not yet been received” (para. 31; see para. 32), not costs of keeping amounts paid (para. 35), displacing Chagnon (paras. 23 to 28); supported by the 1990 and 2013 technical notes (paras. 37 to 41).
- Clément v. The Queen, 2020 TCC 33. A retired judge’s costs of seeking a declaration that he could sit past 70 were not deductible because nothing was owed for services performed (paras. 18 and 22 to 29); the 2013 amendment widened the type of amount, not the need for a debt (paras. 19 to 21).
Paragraph 8(1)(c): clergy residence
- Kraft v. The Queen, 99 DTC 693 (T.C.C.). An ordained chaplain to three custodial facilities was ministering to a congregation; one may minister to more than one. Not opened; cited as characterised in Lichtman, paras. 115, 120 and 213.
- McGorman v. The Queen, 99 DTC 699 (T.C.C.). “Ministering” read broadly (“to serve”, “to attend to the needs of”); missionaries qualified. Not opened; cited as characterised in Lichtman, paras. 115 and 117 to 119.
- Austin v. The Queen, 99 DTC 710 (T.C.C.) (reasons of 26 February 1999, file 92-662-IT-G). Paragraph 8(1)(c) sets a status test and a function test (paras. 6 to 8). A credentialed but unordained Pentecostal minister of music was a “regular minister”, ordination not being required (paras. 32 to 36), and, music forming half of every service, was ministering to the congregation, the way one ministers depending on the denomination (paras. 26 to 28 and 37); he also visited the sick, preached and counselled (para. 29).
- Melo Pereira v. The Queen, 2006 TCC 300. An unordained hospital pastoral animator serving at the archbishop’s goodwill was not a regular minister (paras. 15, 23 and 26).
- Canada v. Lefebvre, 2009 FCA 307. Separate status and function tests (paras. 20 and 22); the status, not the position, must have permanence (para. 26); lay pastoral agents on terminable mandates are not regular ministers (para. 49).
- Canada v. Proulx, 2010 FCA 261. Lefebvre applied; the Tax Court’s allowance for a pastoral agent reversed (paras. 7 to 11 and 13).
- Williams v. The Queen, 2011 TCC 66. “Because of” in subparagraph 8(1)(c)(iii) requires a strong causal connection (paras. 16 to 20); the spouse’s deduction for the same home reduced the claim to $495 (paras. 14 and 24).
- Abrahams v. The Queen, 2013 TCC 391. An ordained pastor was allowed $17,891 (paras. 10 and 16); other employment expenses failed without a T2200 (para. 14).
- Parker v. The Queen, 2015 TCC 86. CPP disability benefits are not remuneration from the office and do not raise the cap (paras. 28 and 36 to 37).
- Moerman v. The Queen, 2015 TCC 295. A full-time hospital chaplain paid by a corporation met the status and function tests (para. 20) and his pay was qualifying remuneration (paras. 23 and 31 to 32).
- Lichtman v. The Queen, 2017 TCC 252. Rabbis teaching full time at a day school were not ministering to a congregation, which requires regularized worship in an institutional setting (paras. 194 and 198 to 199); the history excludes teaching clergy (paras. 202 to 208); volunteer ministry does not count (paras. 213 to 215).
- Hoch v. The Queen, 2019 TCC 99. The “or” between subparagraphs 8(1)(c)(iii) and (iv) is disjunctive (paras. 16 to 17, 20 to 22 and 28).
- Schroeder v. The King, 2024 TCC 56. Status and function conceded (paras. 18 and 22), an RCMP chaplain paid by a foundation was an employee under Wiebe Door, Sagaz and Connor Homes (paras. 23 to 29), so the deduction was allowed (paras. 19 and 37); the T1223 had been filed (para. 3).
Paragraph 8(1)(f): sales expenses
- Verrier v. Canada, [1990] 3 F.C. 3 (C.A.), rev’g [1989] 2 F.C. 71 (T.D.). A commissioned car salesman with no written contract deducted gas, parking, advertising, entertainment and finders’ fees: the undisputed evidence showed he was required to pay his own expenses, and since failure to sell enough cars meant dismissal and both sides recognized that enough cars could be sold only by working away from the showroom, he was “ordinarily required” to work away from the employer’s place of business, although the means were his own; the expenses deductible under paragraph (f) need not relate to the absence from the showroom, and the “ordinarily required” criterion, “arbitrary” or not, must be applied according to its plain meaning (reasons of Mahoney J.A.; the report has no paragraph numbers).
- Karda v. The Queen, 2005 TCC 564, aff’d on other issues 2006 FCA 238. An insurance agency field executive acting as a resource person for agents was not employed in selling property or negotiating contracts (para. 33), and in any event subparagraph (f)(i) requires that the contract stipulate that the employee pay his own expenses; expenses incurred “at his own peril” to improve his bonus were voluntary (para. 34). The Federal Court of Appeal dealt only with the validity of the reassessment and interest expenses (2006 FCA 238, paras. 2 to 5).
- Emond v. The Queen, 2011 TCC 142. A salesman working from home travelled in the course of the employment from home (para. 10); car loan repayment was capital (para. 12); a reasonable allowance engages subparagraph (f)(iv) (para. 15).
- Tulman v. The Queen, 2014 TCC 140. A tacit requirement suffices (para. 30) but was not proven (para. 35); pay not fixed by reference to sales failed subparagraph (f)(iii) (paras. 41 to 42).
- Perera v. The Queen, 2014 TCC 280. Deductions are capped at commissions and must meet the purpose test (paras. 14 to 16); work clothing and dry cleaning were personal (paras. 22 and 24).
- Aboud Schofield v. The King, 2022 TCC 142. Only amounts expressly provided for are deductible (para. 6); the T2200 answer was “sufficient” for subparagraph (f)(i) (para. 30); recruiter fees were business development, not capital (paras. 31 and 34 to 37).
- Rosen v. The King, 2025 TCC 6. Amounts spent in a year without commissions could not be deducted against later commissions; employees compute on a cash basis (paras. 5 and 65 to 68).
- Samotus v. The King, 2025 TCC 104. Clothing purchases failed under paragraph (f) and subparagraph (i)(iii) for want of an express or implied term (paras. 15 and 20 to 25); the T2200 must be obtained when filing (para. 7) and a mistaken one is prima facie evidence only (para. 26).
Paragraphs 8(1)(h), (h.1) and (j): travel and motor vehicles
- Rozen v. Canada, 85 DTC 5611 (F.C.T.D.). A term requiring the employee to pay may be implied where travel is needed and the employer will not pay the full cost. Not opened; cited as characterised in Barry, para. 13, Samotus, para. 19, and Rousseau, para. 28.
- The Queen v. Hoedel, 86 DTC 6535 (F.C.A.). A condition can be a condition of employment even if breach would not lead to discipline. Not opened; cited as characterised in Samotus, para. 21 and n. 11. Verrier (C.A.) quotes Heald J.A. that if failure to carry out a task “can result in an unfavourable assessment by his employer” that is “compelling evidence that the task in issue is a duty of employment”, and Mason, para. 12, describes the police dog handler’s trips home as duties of the employment.
- Chrapko v. Canada, [1984] F.C.J. No. 934 (C.A.) (cited as 88 DTC 6487). Home-to-work travel can be in the course of employment where the employee is ordinarily required to work in different places. Not opened; cited as characterised in Rousseau, para. 31.
- Hogg v. Canada, 2002 FCA 177, [2002] 4 F.C. 443. Travel expenses must be incurred while performing the duties, as the French version confirms (paras. 9 to 13); a judge’s drive to the courthouse was personal (para. 15).
- Dionne v. Canada, 2006 FCA 79. In oral reasons, the Court allowed the appeal on paragraphs 8(1)(h) and (h.1) because the Crown conceded that the facts could not be distinguished from Champaigne v. The Queen, 2006 TCC 74, whose interpretation “would entitle Mr. Dionne to succeed” and which counsel could not show was wrongly decided (paras. 3 to 5); it upheld the Tax Court on legal and incidental expenses (para. 2) and accepted the meal claim without deciding the subsection 8(4) point (para. 6). The reasons do not state the permanent establishment test, which Martorelli, para. 18, draws from Champaigne and Dionne together.
- Rousseau v. The Queen, 2006 TCC 552. A site office was the employer’s place of business (para. 20); for an employer with changing sites, home-to-site travel was in the course of the duties (paras. 24 to 34).
- Ragsdale v. The Queen, 2008 TCC 232. The only condition of paragraph 8(1)(j) is a deduction under (h.1), (f) or (h), and the (h.1) employment share fixes the (j) share (paras. 24 to 25 and 34 to 36).
- Bingley v. The Queen, 2010 TCC 34. The three conditions of paragraph (h.1) (para. 6); a casual engineer hired for each posting was travelling to work (paras. 7 to 9).
- Veinot v. The Queen, 2010 TCC 112. An allowance not based solely on kilometres was not reasonable, so actual expenses were deductible, net of the allowance (paras. 19 to 25).
- Martorelli v. The Queen, 2010 TCC 216. A construction site is a place of business of the employer for subparagraph (h.1)(i) if it is in the nature of a permanent establishment of the employer (para. 18, citing Champaigne and Dionne); a worker driving to one construction site failed subparagraph (h.1)(i) (paras. 15 to 21).
- Brown v. The Queen, 2012 TCC 452. A Cathay Pacific pilot’s travel from Calgary to his Los Angeles base was commuting; a consent judgment in another case has no precedential weight (paras. 5 to 12).
- Barry v. Canada, 2014 FCA 280. The contract must oblige the employee to pay (para. 10); CRA statements do not displace judicial interpretation (para. 11); commuting is personal (paras. 14 to 15); a cell phone the employer did not require failed subparagraph (i)(iii) (paras. 16 to 17).
- Gardner v. The Queen, 2020 TCC 108 (informal procedure). A sales representative whose employer’s T2200 required her to work from a home office, where she did 90 per cent of her work, and who had no office of her own at the employer’s Oakville location, could deduct under subparagraph (h.1)(ii) her driving between the home office and Oakville for meetings (paras. 1 to 6 and 12 to 13), applying Campbell v. The Queen, 2003 TCC 160, and distinguishing McCreath v. The Queen, 2008 TCC 595, where an office was available (paras. 7 to 11). The CRA gives it little weight (2023-0983051C6).
- Mason v. The Queen, 2022 TCC 65 (informal procedure). Subparagraph (h.1)(i) does not require that the majority of the duties be carried on in different places, only that the employee be ordinarily required to carry them on there (paras. 27 to 29). A construction foreman whose employer, by the T2200, required him to store and repair its tools in his garage overnight had two regular places of work (paras. 30 to 34), and his drives between home and the sites were in the course of the employment, by analogy with Campbell and Hoedel (paras. 37 to 40).
Paragraph 8(1)(i) and subsection 8(13): dues, supplies and work space
- M.N.R. v. Montgomery, [1970] C.T.C. 115 (Ex. Ct.). Considered a reading under which only dues that both maintain professional status and are the source of the right to practise are deductible. Not opened; cited as characterised in Swingle.
- The Queen v. Swingle, [1978] 1 F.C. 743 (T.D.). A chemist’s learned-society dues failed because no statute recognized his professional status; “professional” implies special skills or qualifications (closing reasons; the report has no paragraph numbers).
- Landry v. The Queen, 2007 TCC 383. An implied requirement to keep a home office, used exclusively and for regular meetings, satisfied subparagraph 8(13)(a)(ii) (paras. 26 to 32).
- Bykov v. The King, 2024 TCC 36, aff’d 2025 FCA 103 (leave to appeal to the S.C.C. dismissed 16 April 2026, No. 41957). “Principally” means more than 50 per cent (para. 44), tested per employment (para. 47); subparagraph 8(13)(a)(ii) needs exclusive and regular use for meetings (para. 48); paragraph (f) was unavailable to a nurse paid per visit who did not sell or negotiate (paras. 37 to 40); the T777 is not evidence of quantum (para. 25); the conditions of (h) and (h.1) were met (paras. 51 to 53); an excluded allowance bars (h.1) (paras. 54 to 55 and 61 to 62) but a per-visit allowance did not (paras. 63 to 69); (j) depends on (f), (h) or (h.1) (para. 70); the appeal failed on quantum (paras. 72 to 75), the T2200s not being determinative of it (2025 FCA 103, paras. 7 to 12).
Subsections 8(10) and 8(4): the certificate and meals
- Richardson v. The Queen, 2018 TCC 135. The T2200 is not determinative if the evidence leads elsewhere (para. 6); without diligent efforts to obtain one its absence “is fatal” (paras. 7 to 10); Toronto-area meals failed subsection 8(4) (para. 17).
- Le Bouthillier v. Canada, 2021 FCA 119, aff’g 2019 TCC 176. A T2200 was “of no help” where the termination letter showed the employment had ended (para. 5); subsection 8(10) makes the form a precondition but not determinative (2019 TCC 176, paras. 28 and 35).
The next tab lists the CRA’s published positions on section 8.
CRA documents
In plain terms, the CRA’s main guidance on section 8 is Guide T4044, updated each year, together with one folio on dues, several archived bulletins and a series of technical interpretations. The CRA’s views do not bind the courts (Barry, para. 11), and the 2025 guide is out of date on the labour mobility deduction for 2026.
- Guide T4044, Employment Expenses 2025 (modified 20 January 2026). The T2200 is kept, not filed, and the CRA “will accept an electronic signature” by the employer on Forms T2200 and T1223 (“Forms included in this guide”); commission expenses cannot exceed commissions except vehicle interest and capital cost allowance; a basic cell phone plan is allowed but not a basic landline; the TL2 simplified meal rate is $23 per meal, three a day; artists’ cap of $1,000 and 20 per cent; tradesperson’s tools threshold $1,471 for 2025; work-space test of more than 50 per cent for four consecutive weeks; logbook for vehicles; Class 10.1 cap $38,000, lease limit $1,100 and interest limit $350 a month for 2025. Its labour mobility figures ($4,000, 150 km) are superseded for 2026. Chapter 11 (GST/HST rebate) was not read.
- Folio S2-F2-C1, Employee Professional Membership and Other Dues (15 July 2025). Subparagraphs 8(1)(i)(i) and (iv) to (vii) and subsection 8(5): statutory recognition and mandatory membership; initiation fees, special assessments, examination and licence fees excluded; malpractice insurance carved out. It cancelled IT-158R2 and is the only chapter in the employment expenses folio.
- Folio S4-F14-C1, Artists and Writers, relevant to paragraph 8(1)(q); replaced IT-525R and IT-504R2 (existence verified from the listing only).
- Archived bulletins: IT-522R, Vehicle, Travel and Sales Expenses of Employees (1996), still the fullest statement on paragraphs (f), (h), (h.1) and (j); IT-352R2, Employee’s Expenses, Including Work Space in Home Expenses; IT-99R5 (Consolidated), Legal and Accounting Fees, paras. 22 to 28 on paragraph 8(1)(b), to be read against the 2013 wording; IT-141R (Consolidated), Clergy Residence Deduction, status test paras. 3 to 7 and function test paras. 13 to 20; IT-103R, union and committee dues, superseded in substance by S2-F2-C1; IT-357R2, Expenses of training; IT-518R, Food, Beverages and Entertainment Expenses. IT-158R2 was cancelled on 15 July 2025.
- Web pages: home office expenses for employees and its detailed-method page (modified 20 January 2026: a written or verbal agreement suffices, a voluntary formal telework arrangement counts, T2200 required, flat rate ended after 2022); line 22900 (tools certified at T2200 Part C, question 12 for a tradesperson and question 13 for an eligible apprentice mechanic); the tax tip of 21 December 2023 (Form T2200 being updated for 2023, to be “easier to complete for employees who are only claiming a deduction for home office expenses”; a T2200 signed by the employer and the detailed method required for 2023; flat rate “extended for the 2021 and 2022 tax years” and not available for 2023); line 21200; line 23100 (T1223 Parts A and C by the claimant, Part B by the employer, kept not filed); the Budget 2022 labour mobility page (modified 21 October 2024; pre-2026 figures); the 3 September 2020 news release raising the meal rate from $17 to $23 from 1 January 2020; and the 2026 reasonable kilometre allowance rates (73 and 67 cents), which are employer rates, not an employee deduction method.
- Technical interpretations (taxinterpretations.com): 2021-0914351C6 (TEI, 19 November 2021: a formal work arrangement, verbal, email or written, is a contractual requirement; “principally” is more than 50 per cent; a signed T2200 gives no assurance of deductibility); 2021-0911851C6 (CTF roundtable, 25 November 2021: the employer determines the conditions of employment); 2013-0481171E5 (face-to-face meetings only for subparagraph 8(13)(a)(ii)); 2000-0022015 (no mortgage interest, CCA, property tax or insurance for salaried employees); 2011-0403621M4 (telephone line and internet not supplies, superseded in practice); 2015-0603631I7 (cellular minutes and data may be supplies); 2010-0383031E5 and 2009-0334751E5 (“normally” and “ordinarily”); 2006-0185451E5 (no refusing a reasonable allowance); 2023-0983051C6 (CPA Canada roundtable, 29 August 2023: home to regular workplace is personal; Gardner discounted); 2015-0598631E5 and 2015-0576461E5 (school chaplains, status and function tests); 2017-0699751E5 (paragraph 8(1)(b) fees deductible in the year paid); 2005-0116061E5 (paragraph 8(1)(n) not for inadequate performance); 2002-0130185 (assistant’s salary under paragraph (f), general comments).
The next tab lists the regulations, forms and choices that support these positions.
Regulations, forms, and elections
In plain terms, the Regulations supply the capital cost rates and vehicle limits that section 8 borrows, and the forms are where the employer confirms the conditions and the employee computes the claim.
- Income Tax Regulations, C.R.C., c. 945, s. 1100(1)(a): capital cost allowance “for the purposes of paragraphs 8(1)(j) and (p) and 20(1)(a)”; Classes 10 and 10.1 at 30 per cent; Schedule II, Class 10.1.
- Regulations, s. 7307: the capital cost ceiling ($38,000 plus tax after 2024, $37,000 for 2024, $36,000 for 2023; $61,000 for zero-emission vehicles after 2022), the interest limit ($350 a month after 2023) and the lease limit ($1,100 a month after 2024). Sections 7306 and 7305.1 are business and benefit rules, not employee deductions.
- Regulations, s. 238(1): “construction activities”, incorporated by paragraph 8(14)(a). Subsection 6802.1(1) prescribes two plans for paragraph 8(1)(m.2): the pension plan established as a consequence of the establishment, by section 27 of the Members of Parliament Retiring Allowances Act, of the Members of Parliament Retirement Compensation Arrangements Account, and “the pension plan established by the Retirement Compensation Arrangements Regulations, No. 1” (SOR/2000-12, s. 2).
- Forms: T2200, Declaration of Conditions of Employment (2025), the prescribed form for subsections 8(6), (6.1) and (10); T2200S (COVID-19, archived); T777, Statement of Employment Expenses and T777S (archived); T1223, Clergy Residence Deduction; TL2, Claim for Meals and Lodging Expenses; GST370, Employee and Partner GST/HST Rebate Application.
- T1 lines: 22900 (other employment expenses, including tools and labour mobility), 21200 (dues), 23100 (clergy residence), 20700 (registered pension plan contributions; CRA page not read), 45700 (GST/HST rebate) and 31260 (Canada employment amount).
- Choices: paragraph (f) or paragraphs (h) and (h.1) each year, the two routes being exclusive under subparagraphs (h)(iv) and (h.1)(iv); a reasonable allowance or actual costs, the excluded allowance barring the deduction; the subparagraph 8(1)(c)(iii) or (iv) measure, not both (Hoch); the carry-forwards in subsection 8(13)(c), the description of C in paragraph 8(1)(r) and, for artists, paragraph 8(1)(q); and the timing of labour mobility expenses within paragraph 8(14)(d).
The next tab turns to filing and record-keeping.
Compliance
In plain terms, an employee claiming under section 8 needs the employer’s form, the right schedule, and the records behind every figure, and the CRA routinely asks for all three.
Most claims are computed on Form T777 and carried to line 22900; dues go on line 21200, the clergy deduction on line 23100 and pension contributions on line 20700, and transport employees use Form TL2 with the employer completing Part 3. Subsection 8(10) speaks of the form being “filed with the taxpayer’s return”, but the CRA’s administrative position is that the employee keeps the T2200 or T1223 and produces it on request, and it accepts the employer’s electronic signature on either form (Guide T4044 (2025)); the CRA announced that the 2023 T2200 would be easier to complete for employees claiming only home office expenses (tax tip of 21 December 2023). The form should be obtained when the return is prepared (Samotus, para. 7). The Act imposes no express duty on an employer to issue a T2200, and the employer does not certify the “principally” test, which remains the employee’s burden (technical interpretation 2021-0914351C6). The CRA asks employees to keep receipts, invoices and vehicle records for six years, a logbook of total and employment kilometres for any vehicle claim, and, for a work space, the floor areas, the weekly hours of use of a shared space, and evidence of the four-week or exclusive-use period (Guide T4044 (2025)); records are decisive because the taxpayer must prove the amounts (Bykov, paras. 72 to 75). The GST/HST paid on deductible expenses may be recovered by employees of a registrant (not a listed financial institution) under section 253 of the Excise Tax Act on Form GST370 within four years after the end of the year; subsection 8(11) keeps the rebate from reducing the deduction, and subsection 6(8) includes it in income when received.
The normal reassessment period for an individual ends three years after the original notice of assessment (paragraph 152(3.1)(b)), extended for misrepresentation attributable to neglect, carelessness or wilful default or by waiver. Employment expense claims are often selected for pre-assessment or processing review requesting the T2200, logbooks and receipts. A claim made knowingly or with gross negligence attracts the subsection 163(2) penalty, the greater of $100 and 50 per cent of the tax on the understatement, the burden lying on the Minister (subsection 163(3)).
The next tab offers practical points for structuring employment terms and for disputes.
← Regulations, forms, and electionsPlanning and dispute notes →
Planning and dispute notes
In plain terms, most section 8 deductions turn on what the employment terms require, so the terms should be written down before the year begins and the employer’s form should match the facts. In a dispute the form helps but the facts decide.
Planning
The contractual requirement in paragraphs 8(1)(f), (h) and (h.1) and subparagraphs (i)(ii) and (iii) is an evidentiary point: it should appear in the offer letter, a policy incorporated by reference, or a written telework arrangement, because a choice by the employee, however sensible, will not do (Barry; Samotus). For home offices the CRA accepts a verbal or email agreement, but a written arrangement is better evidence. Employers should keep a documented T2200 process, with consistent answers to the percentage question, signature by an authorized person and no certification of conditions not met. Arrangements that rely on travel from a home office to the regular workplace should be expected to be challenged, the CRA discounting Gardner.
Allowances call for a choice. A reasonable per-kilometre allowance is tax-free but bars paragraph (h.1); an allowance not based solely on kilometres, or combined with a reimbursement other than for supplementary insurance, tolls or ferries, is deemed unreasonable under subparagraphs 6(1)(b)(x) and (xi), is taxable, and leaves the deduction open; and no allowance with a claim under paragraphs (h.1) and (j) may suit an employee who drives a great deal. A commissioned employee whose expenses exceed commissions should compare paragraph (f) with paragraphs (h) and (h.1), remembering that meals, entertainment and club dues are limited by section 67.1 and subparagraph (f)(vi). A legal claim combining unpaid pay and dismissal damages should allocate fees between paragraph 8(1)(b) and paragraph 60(o.1). Clergy claims depend on a formal act of appointment or recognition by the denomination itself (IT-141R; technical interpretation 2015-0598631E5). Construction workers relocating for 2026 and later years should plan to the $10,000 cap and the 120 km test, keeping the ordinary residence available and unrented, and claiming expenses in the year incurred, the previous year or before 1 February of the following year.
Disputes
The taxpayer bears the onus of showing that each statutory condition is met and of proving the amounts (Bykov). A signed T2200 “does not provide an employee with any assurance that the expenses incurred are deductible” (technical interpretation 2021-0914351C6) and is prima facie evidence only (Samotus, para. 26; Richardson, para. 6), but without diligent efforts to obtain one the claim fails (Richardson, paras. 7 to 10). Evidence of the actual requirement, such as policies, emails and the employer’s testimony, usually decides “required under the contract” cases. Where the Minister assumes the wrong legal test, the onus on the relevant fact may shift to the Crown (Podlesny, paras. 17 to 23). An individual may object by the later of one year after the filing-due date and 90 days after the notice of assessment is sent (paragraph 165(1)(a)), and may appeal to the Tax Court after confirmation, or after 90 days without a decision, and no later than 90 days after confirmation (subsection 169(1)). The Minister bears the burden on a subsection 163(2) penalty (subsection 163(3)), and penalties and interest may be waived under subsection 220(3.1) for a taxation year ending within the ten calendar years before the request.
The next tab compares the provincial and treaty treatment.
Provincial and treaty parallels
In plain terms, most provinces simply adopt the federal computation, so section 8 applies to provincial tax as well; Quebec has its own parallel rules, with credits in place of two federal deductions; and the treaties do not prescribe deductions.
Ontario’s Taxation Act, 2007, S.O. 2007, c. 11, Sch. A, s. 1(1), defines an individual’s income as “the individual’s income for the year as determined in accordance with and for the purposes of the Federal Act”; Alberta’s Personal Income Tax Act, R.S.A. 2000, c. A-30, defines income for the year by reference to Part I of the federal Act (s. 1(1)(j)(iii)) and equates taxable income with federal taxable income (s. 5(1)); and British Columbia’s Income Tax Act, R.S.B.C. 1996, c. 215, s. 1(1), gives “taxable income” the federal meaning. Section 8 therefore operates in those provinces through the federal computation.
Quebec’s Taxation Act, CQLR c. I-3, reproduces the federal structure in its own numbering: section 59 is the general limitation, allowing no deduction “except as provided in this chapter and only to the extent that such amount may reasonably be regarded as applicable to that office or employment”; section 62 covers salesmen, sections 62.1 to 62.3 the work space, section 63 travel and section 63.1 motor vehicles, section 64 interest and capital cost, section 64.3 the employer’s confirmation in prescribed form, section 65 the twelve-hour meal rule (with an exception for meals with a client that subsection 8(4) lacks), sections 65.1, 66 and 67 delivery, transport and railway employees, section 75 the employer premiums for an assistant, section 75.1 professional liability insurance, sections 75.2 to 75.5 tools (the tradesperson deduction capped at $1,000 by section 75.2.1), section 77 legal expenses, section 78 office rent, assistants and supplies, and section 78.4 musicians. Quebec gives credits where the federal Act gives deductions for union and professional dues (10 per cent under section 752.0.18.3) and clergy residence (section 752.0.10.0.11), and has a general “deduction to workers” in section 358.0.3 of the lesser of $1,000 and 6 per cent of employment and active business income, which has no federal analogue except the credit in subsection 118(10). A credit gives every claimant the same value; a deduction is worth more to those in higher brackets.
Treaties seldom engage section 8 directly. Article XV of the Canada-United States convention, as amended by Article 10 of the 2007 Protocol and now titled “Income from Employment”, allocates taxing rights over employment exercised in the source state, subject to the $10,000 and 183-day exceptions, but prescribes no deductions. Under section 3 of the Income Tax Conventions Interpretation Act, an undefined treaty term takes its meaning under the Act “as amended from time to time”, so Canada computes the employment income it may tax under domestic rules, section 8 included. Article 15 of the OECD Model Tax Convention on Income and on Capital (condensed version, 2017), like Article XV, only allocates taxing rights: “salaries, wages and other similar remuneration” are taxable only in the residence state unless the employment is exercised in the other state (paragraph 1), subject to the 183-day, non-resident employer and permanent establishment exceptions (paragraph 2), and the Commentary locates the employment where the employee “is physically present when performing the activities” and reads remuneration to include benefits in kind (paras. 1 and 2.1); neither the Article nor Commentary paragraphs 1 to 2.3 address deductions in computing that remuneration.
The next tab lists the related provisions of the Act.
Annotated cross-references
In plain terms, section 8 works with the inclusion rules before it and a number of limits elsewhere in the Act.
- Section 4: the source rule echoed in the opening words of subsection 8(1).
- Section 5: the gross income from which section 8 deductions are taken, and the loss under subsection 5(2) where they exceed it.
- Section 6: allowances whose exclusion under paragraph 6(1)(b) bars paragraphs 8(1)(f), (h) and (h.1); the standby charge in paragraph 6(1)(e); the rebate inclusion in subsection 6(8); “top-up disability payment” in subsection 6(17).
- Section 7: the security benefit reversed by subsection 8(12).
- Section 9 and section 18: the business computation that subsection 8(2) excludes; paragraph 18(1)(l), imported by subparagraph 8(1)(f)(vi).
- Section 13, section 67, section 67.1, section 67.2 and section 67.3: reasonableness, the 50 per cent meal limit, and the passenger vehicle cost, interest and lease limits.
- Section 56 and section 60: retiring allowances and the legal fee deduction in paragraph 60(o.1), the alternative to paragraph 8(1)(b).
- Section 117.1: indexing of the tool threshold (paragraph (2)(b)) and of the labour mobility cap (paragraph (2)(b.1)).
- Section 118: the Canada employment credit in subsection 118(10), to which the tool deductions are linked.
- Section 144, section 147.2 and section 207.8: the EPSP, pension and excess EPSP rules behind paragraphs 8(1)(o.1), (m) and (o.2).
- Section 248: “office”, “employment”, “employee”, “business”, “motor vehicle”, “self-contained domestic establishment”, “salary deferral arrangement”, “retirement compensation arrangement” and “prescribed”.
The last tab lists the sources.
Sources
In plain terms, every statute below was read on Justice Laws or the provincial official site, every opened decision on the court’s own site, and every CRA document on canada.ca, on 11 October 2026 unless noted; unverified items are identified.
- Income Tax Act, R.S.C. 1985, c. 1 (5th Supp.), s. 8: Justice Laws (Act current to 21 September 2026, last amended 18 June 2026), the point-in-time index and versions of 31 August 2004, 21 February 2007, 14 December 2012, 26 June 2013, 23 June 2022, 22 June 2023, 20 June 2024 and 18 June 2026; sections 6, 117.1, 118, 152, 163, 165, 169, 220, 248 and 249; Excise Tax Act, s. 253; Income Tax Regulations, ss. 238, 1100 and 7307; Interpretation Act, Income Tax Application Rules and Income Tax Conventions Interpretation Act.
- Amending Acts: S.C. 2026, c. 22, 2024, c. 17, 2023, c. 26, 2022, c. 10, 2013, c. 34, 2012, c. 31, 2007, c. 2, 2002, c. 9 and 2001, c. 17 (Justice Laws); royal assent bills on parl.ca for 2000, c. 12, 1999, c. 22, 1998, c. 19, 1996, c. 23, 1994, c. 21 and 1994, c. 7; the Library of Parliament legislative summary of Bill C-30. The original 1991 and 1993 Acts were not read.
- Historical texts (archive.org scans): S.C. 1988, c. 55; S.C. 1970-71-72, c. 63; R.S.C. 1970; R.S.C. 1952; S.C. 1948, c. 52; S.C. 1919, c. 55; the 1917 Act in a 1918 reproduction; and, read on 12 October 2026, S.C. 1974-75-76, c. 26, 1977-78, c. 1, 1980-81-82-83, c. 48, 1980-81-82-83, c. 140, 1984, c. 1, 1986, c. 6, 1986, c. 55, 1990, c. 35, 1991, c. 49 and 1993, c. 24. The 1917 sessional text and R.S.C. 1985 (5th Supp.) as enacted were not read.
- Government reports: Royal Commission on Taxation, Report, vol. 3; Proposals for Tax Reform (1969); Summary of 1971 Tax Reform Legislation; Tax Reform 1987; Report on Federal Tax Expenditures 2026, Part 2 and 2022, Part 9; CRA news release of 15 December 2020 and tax tip of 14 February 2022.
- Case law, on the courts’ sites: Supreme Court of Canada, decisions.scc-csc.ca (Gifford; the Bykov leave docket, No. 41957); Federal Court of Appeal and Federal Courts Reports (Barkley, Fenwick, Lefebvre, Proulx, Hogg, Barry, Bykov 2025 FCA 103, Le Bouthillier, Swingle); Tax Court of Canada, decision.tcc-cci.gc.ca and the mirror hosts (the remaining Tax Court decisions listed under Relevant case law). On 12 October 2026 a second pass read Sagaz and Symes on the Supreme Court’s site, Connor Homes, Loo, Blagdon, Dionne and Karda (F.C.A.) on the Federal Court of Appeal collection, Wiebe Door and Verrier in the Federal Courts Reports, and Karda (T.C.C.), Austin, Gardner, Mason and Bykov on the Tax Court collection. Six decisions (Kraft, McGorman, Hoedel, Rozen, Chrapko, Montgomery) were not found on a court site and are cited only as characterised in the later decisions named.
- CRA documents on canada.ca as linked under CRA documents, and severed letters on taxinterpretations.com. The CRA tax tip of 21 December 2023 on the 2023 Form T2200 was read on 12 October 2026. Not verified: the 2024 changes to Form T2200, T4044 Chapter 11, the exact dates of IT-352R2, IT-103R and IT-357R2, and the line 20700 page.
- Provincial and treaty texts: Ontario Taxation Act, 2007; Alberta Personal Income Tax Act; British Columbia Income Tax Act; Quebec Taxation Act, CQLR c. I-3; Canada-United States Tax Convention Act, 1984; OECD Model Tax Convention, condensed version 2017, Article 15 and Commentary paras. 1 to 2.3.
- Commentary: Li, Magee and Wilkie, Principles of Canadian Income Tax Law, 11th ed. (publisher; citation only); Krishna, Duff et al., and the Rai item in (2021) 69:2 CTJ 487 were not read.
This page ends here; the current text and automatic cross-references are shown above it.
Cross-references
This section refers to
Referred to in
Blog posts on this section
- Lawyers' Obligation under Privacy Act
- Brandt v The Queen, 2013 TCC 70
- Brown v MNR, 2012 TCC 251
- Brown v The Queen, 2013 FCA 111
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- CRA, Taxation, and Solicitor Client Privilege
- Cunningham v The Queen, 2012 TCC 279
- Deducting Employment Expenses
- Dicosmo, 2017 FCA 60: a statute-barred argument must be pleaded, and credibility findings stand on appeal
- Edmond v The Queen, 2011 TCC 142 (eng translation)
- Employee Expenses - Office In Home
- John Stuart Mill on Redistribution
- Kreuz v The Queen, 2012 TCC 238
- MNR v RBC Life Insurance Co, 2013 FCA 50
- Price v The Queen, 2012 FCA 332
- Professional Employee Legal Expenses
- Sharma, 2026 TCC 182: a commission salesperson may deduct only the expenses the employer required, and the Tax Court is bound by Urquhart to say so
References are generated from the statutory text and list other sections of the Act only.
Citation
Income Tax Act, R.S.C. 1985, c. 1 (5th Supp.), s. 8.
Annotation: Sas Tullo, “ITA s. 8”, Pariz Tax Wiki, online: <www.pariz.ca/tax-wiki/ita/8>.