{"id":1603,"date":"2019-11-15T11:08:00","date_gmt":"2019-11-15T19:08:00","guid":{"rendered":"http:\/\/165.227.41.74\/?p=1603"},"modified":"2022-02-28T16:46:37","modified_gmt":"2022-03-01T00:46:37","slug":"moving-in-a-canoe-is-still-moving-but-is-it-deductible","status":"publish","type":"post","link":"https:\/\/previous.ca.andersen.com\/fr\/blog\/moving-in-a-canoe-is-still-moving-but-is-it-deductible\/","title":{"rendered":"Moving in a Canoe is Still Moving, But Is It Deductible?"},"content":{"rendered":"\n

CBC news and the National Post recently reported that the Canada \nRevenue Agency (\u201cCRA\u201d) agreed to cover the moving expenses of a man who \nrelocated for work in a canoe. See the links below<\/p>\n\n\n\n

https:\/\/www.cbc.ca\/news\/canada\/ottawa\/john-konecny-canoe-move-tax-law-canada-1.5355436<\/a><\/p>\n\n\n\n

https:\/\/nationalpost.com\/news\/my-monty-python-esque-response-to-the-queen-how-one-man-proved-his-point-to-the-government-with-a-canoe<\/a><\/p>\n\n\n\n

John Konecny had been teaching in Whitby, Ontario during the regular \nschool year and teaching in Ottawa, Ontario during the summer for the \nlast three decades. He had been claiming his moving expenses between his\n two work places every year until a Tax Court of Canada (TCC) judge \nscoffed at his claims and denied his moving expense for 2011. This \ndenial triggered John to fight back by testing if the CRA would have a \nproblem if he was by moving by train, plane, bicycle, on foot, and most \nrecently, in a canoe.<\/p>\n\n\n\n

Konecny\u2019s case is certainly unusual in terms of the transportation \nselected, and about as Canadian as it gets, but when it comes to moving \nexpenses, the law is fairly simple. And, with all due respect, the CRA \nshould not be allowing him to deduct these costs!<\/p>\n\n\n\n

\u201cEligible Relocation\u201d<\/h2>\n\n\n\n

Under Section 62 of the Income Tax Act (the \u201cAct\u201d), one of the \nrequirements of an \u201celigible relocation\u201d is that the distance between \nthe old residence and the new work location is 40 kilometers greater \nthan the distance between the new residence and the new work location. \nFor example, in Mr. Konecny\u2019s case in 2014 (http:\/\/canlii.ca\/t\/g6kgg<\/a>)\n there was no issue that he had moved more than 40km closer to his \nsummer work, nor was there an issue with the mode of transport as he \nimplies in the news articles. Rather, the issue was whether he actually \nmoved his \u201cordinary residence\u201d.<\/p>\n\n\n\n

In his 2011 tax year, what the news articles fail to mention, is that\n Mr. Konecny \u201cmoved\u201d from his house in Whitby into his mother\u2019s house in\n Ottawa for the summer with his children, as he had done this in \nprevious years. The judge\u2019s decision at the Tax Court of Canada was that\n going to live with a relative for the summer, and then moving back to \nhis house in the fall every year to return to his regular teaching job, \ndid not amount to an actual change in his \u201cordinary residence\u201d.<\/p>\n\n\n\n

The case law on \u201cordinary residence\u201d acknowledges that one can have \nmore than one ordinary residence, particularly where the stay in the \n\u201csummer home\u201d is \u201croutine, regular and predictable\u201d, as was exactly the \ncase here. As all Mr. Konecny did was move from one place where he was \nordinarily resident in the winter to another where he was ordinarily \nresident in the summer, there was no eligible relocation. Mr. Konecny\u2019s \nposition that the TCC judge was somehow questioning his loyalty to the \ncountry by denying his moving expense claims are therefore somewhat \nover-wrought. As a result, the fact that he is moving by canoe does not \nalter the fact that he is not changing anything, rather simply \nrelocating each year between his two ordinary residences<\/strong>.\n Consequently, we agree with the Tax Court of Canada judge that the CRA \nshould NOT have granted him the deduction for this or any other year!<\/p>\n\n\n\n

I had a case a while back involving an employee assigned overseas and\n a claim for moving expenses after a reassignment back in Canada. \nConsequently, she shipped the majority of her worldly goods back home. \nHowever, at the last minute, one of the employer’s other overseas \noffices had a staffing issue, and the employer asked my client to fill \nin for six weeks. The six weeks turned into a year and 9 months. \nMeanwhile, her personal effects were in storage. Normally the employer \nwould have paid for it, but because of specific circumstances, our \nclient had to pay for the storage herself. She deducted the storage cost\n as a moving expense on her tax return, but the CRA challenged her \ndeduction on the basis that her move was from one overseas \u201cordinary \nresidence\u201d to another, both of which were outside of Canada, so the \nexpense in the tax year did not relate to an eligible relocation. We had\n to take the matter all the way to the courthouse steps in the \u201cinformal\n procedure\u201d of the Tax Court of Canada before the matter was settled in \nher favour. In her case we were able to argue that the expense related \nto her relocation from overseas to Canada. The fact that it took so long\n to complete the move was irrelevant!<\/p>\n\n\n\n

The take-away here is if you are uncertain whether your moving expenses would be considered deductible under Section 62 of the Act or do not agree with a CRA\u2019s position on any audit, you should probably not move by canoe, and rather get some advice and professional assistance.<\/p>\n","protected":false},"excerpt":{"rendered":"

CBC news and the National Post recently reported that the Canada Revenue Agency (\u201cCRA\u201d) agreed to cover the moving expenses of a man who relocated for work in a canoe. See the links below https:\/\/www.cbc.ca\/news\/canada\/ottawa\/john-konecny-canoe-move-tax-law-canada-1.5355436 https:\/\/nationalpost.com\/news\/my-monty-python-esque-response-to-the-queen-how-one-man-proved-his-point-to-the-government-with-a-canoe John Konecny had been teaching in Whitby, Ontario during the regular school year and teaching in Ottawa, Ontario during […]<\/p>\n","protected":false},"author":3,"featured_media":1608,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[16,131],"tags":[],"class_list":["post-1603","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-canadian-tax-law","category-deductible-expenses"],"acf":[],"yoast_head":"\nMoving in a Canoe is Still Moving, But Is It Deductible? – Andersen<\/title>\n<meta name=\"description\" content=\"Recent news story discusses the boundaries of deductible moving expenses in 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