GST/HST ITC on Meal Allowance
(Surrey, BC, Canada)
Trucker's Meal Allowances and ITC
Can a transportation driver claim GST/HST I.T.C.'s on meal allowance amounts when they have used the $45.00 per day method rather than using actual receipts?
(I know they can only claim the federal portion at 75% for 2010 on meal allowances.)
I have heard they need the actual receipts to claim I.T.C.'s. I have been claiming the ITC based on the simplied method for years. I have researched this and I am not able to find any information on actual receipts or simplied method.
I would think that you could claim the ITC on 75% (meal/entertainment for truck drivers) of $45.00 without receipts since you claim that on the T1 return.
Do you know where to find info on this?
It is my understanding, as a general rule
, that if the self-employed trucker is a GST/HST registrant, they can claim an ITC for the portion of the expense that is deductible. This means that if they are allowed to claim 75% of their meal allowance, then they can claim 75% of the ITC which is included in the $45/day allowance.
If the trucker is an employee, I believe a employee GST/HST rebate is claimed. You can find this on the CRA website under Individuals> Tax return> Deductions> Employment expenses> Transportation employees.
I don't have an actual reference for the self employed. I'll keep my eyes out for one though. Maybe some of my site visitors know the CRA reference.P.S. I would like to remind you there is a difference between information and advice. The general information provided in this post or on my site should not be construed as advice. You should not act or rely on this information without engaging professional advice specific to your situation prior to using this site content for any reason whatsoever.