Hudema v. Canada
T-474-89
Strayer J.
23/3/94
7 pp.
Appeal from Tax Court's decision confirming reassessment of plaintiff's income tax for 1978, 1979, 1982, 1983, 1984 taxation years-Plaintiff, sales representative, entitled to car allowance and company reimbursing gas, oil, lubrification, parking expenses-Car allowance included in returns as part of income and car expenses deducted from employment income-In 1982, 1983, 1984 other expenses related to car deducted in income tax returns-To be able to deduct expenses for purpose of earning commission income under Income Tax Act, s. 8(1)(f) or to deduct expenses for travelling in course of employment pursuant to s. 8(1)(h), plaintiff must meet certain criteria: required to carry out duties away from employer's place of business, required to pay own expenses, not in receipt of reasonable allowance for travelling expenses-Plaintiff not obliged to use his car and pay costs of operating car-Plaintiff in receipt of reasonable allowance for travelling expenses-Plaintiff alleging allowance not covering all expenses-Not making reasonable use of vehicle-Plaintiff not demonstrating unreasonable for employer to expect use of vehicle in efficient way, with allowance being expected only to pay for incremental use of car as work required-Action dismissed-Income Tax Act, S.C. 1970-71-72, c. 63, ss. 8(1)(f),(h).