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Tax Policy Comparison:
PERSONAL TAXATION #6
| Tax Policy Comparison: PERSONAL TAXATION #6 |
Conservative Party | Liberal Party |
|---|---|---|
| POLICY | Expanded Deductions For Travelling Trades Workers For Cost of Food, Transportation and Accommodation | Expanded Labor Mobility Tax Deduction |
| DATE | 29-Mar-25 | 05-Apr-25 |
| URL | View Policy Video | View Policy |
| DESCRIPTION & COMMENT | This announcement was described as follows by the Conservatives: “The principle of the tax system should be that people can write off costs needed to earn income. But right now, corporate insiders can write off private jets that are not needed to earn company income, while trades workers can only write off $4000 to go to jobs, even if they need to travel 20 or 30 times in a year,” said Poilievre. “Corporations do not need to fly their executives around in private jets to sell products, given that there are commercial flights. Meanwhile, workers must pay to go where the work is. Poilievre announced today that a New Conservative Government will change the Income Tax Act to bring fairness: 1. No more write-offs of luxury corporate jets. Corporations will be able to write off the equivalent of a commercial flight. Charter flights needed to get workers to remote job sites will not be impacted by this change. 2. Travelling trades workers will be able to write off the full cost of food, transportation and accommodation.” With respect to trades persons’ deductions, there are a number of provisions under the Act, that currently deal with this such as paragraphs 8(1)(g), (h), (h.1) and (t). These provisions provide the conditions for certain motor vehicle costs and meals deductions but are subject to various restrictions such as a 50% restrictive deduction for meals (80% for certain long-haul truck drivers). With respect to the reference of $4,000 in the announcement, it appears to be referring to paragraph 8(1)(t) which allows for the deduction of temporary relocation expenses up to $4,000 if the tradesperson is required to temporarily relocate to perform their duties at a temporary work location that is not situated in the locality where they are ordinarily employed or carrying on business. Given the above, it appears the intention of this announcement is to broaden the scope of allowable travel and meal deductions for workers by lifting the $4,000 ceiling under paragraph 8(1)(t) and removing the 50% / 80% deduction limitation for meals if they travel more than 120kms. |
The Liberals announced that they intend to: “Expand the Labour Mobility Tax Deduction to ensure workers who travel more than 120 km from their home to a job site can deduct more of their expenses, and commit to significantly increasing the per-year tax deduction limit… We are also committed to significantly increasing the per-year tax deduction limit upon consultation with key industries.” In order to be eligible for this deduction under paragraph 8(1)(t), the following conditions must be currently met: • The relocation must be temporary and undertaken to enable the tradesperson to perform their duties at one or more temporary work locations situated in the same locality. • The tradesperson must ordinarily reside at a residence in Canada before the relocation and must be away from their ordinary residence for at least 36 hours. • The temporary lodging must be at least 150 kilometers closer to the temporary work location than the ordinary residence. • If the above conditions are met, reasonable expenses incurred for temporary lodging, transportation for one round trip between the ordinary residence and the temporary lodging, and meals consumed during the round trip may be deducted to a maximum of $4,000 per year. From the looks of this policy announcement, the only material adjustment from current law is to reduce the required km distance for eligibility from 150 km to 120 km. This is a copycat of the Conservative announcement of March 29, 2025. In addition, the Liberals will “consult” about what the limit for expenses should be instead of the current $4,000. In my view, that is a cop-out….the Conservatives have committed to remove the $4,000 limit entirely whereas the Liberals in this announcement are not committed to that. |
Tax Policy Comparison:
PERSONAL TAXATION #6
Tax Policy Comparison: Personal Taxation #6
Conservative Party
Date: March 29, 2025
Summary:
Expanded Deductions For Travelling Trades Workers For Cost of Food, Transportation and Accommodation
Description & Comment:
This announcement was described as follows by the Conservatives:
“The principle of the tax system should be that people can write off costs needed to earn income. But right now, corporate insiders can write off private jets that are not needed to earn company income, while trades workers can only write off $4000 to go to jobs, even if they need to travel 20 or 30 times in a year,” said Poilievre. “Corporations do not need to fly their executives around in private jets to sell products, given that there are commercial flights. Meanwhile, workers must pay to go where the work is.
Poilievre announced today that a New Conservative Government will change the Income Tax Act to bring fairness:
1. No more write-offs of luxury corporate jets. Corporations will be able to write off the equivalent of a commercial flight. Charter flights needed to get workers to remote job sites will not be impacted by this change.
2. Travelling trades workers will be able to write off the full cost of food, transportation and accommodation.”
With respect to trades persons’ deductions, there are a number of provisions under the Act, that currently deal with this such as paragraphs 8(1)(g), (h), (h.1) and (t). These provisions provide the conditions for certain motor vehicle costs and meal deductions but are subject to various restrictions such as a 50% restrictive deduction for meals (80% for certain long-haul truck drivers). With respect to the reference of $4,000 in the announcement, it appears to be referring to paragraph 8(1)(t) which allows for the deduction of temporary relocation expenses up to $4,000 if the tradesperson is required to temporarily relocate to perform their duties at a temporary work location that is not situated in the locality where they are ordinarily employed or carrying on business.
Given the above, it appears the intention of this announcement is to broaden the scope of allowable travel and meal deductions for workers by lifting the $4,000 ceiling under paragraph 8(1)(t) and removing the 50% / 80% deduction limitation for meals if they travel more than 120kms.
View Policy Video
Summary:
Expanded Deductions For Travelling Trades Workers For Cost of Food, Transportation and Accommodation
Description & Comment:
This announcement was described as follows by the Conservatives:
“The principle of the tax system should be that people can write off costs needed to earn income. But right now, corporate insiders can write off private jets that are not needed to earn company income, while trades workers can only write off $4000 to go to jobs, even if they need to travel 20 or 30 times in a year,” said Poilievre. “Corporations do not need to fly their executives around in private jets to sell products, given that there are commercial flights. Meanwhile, workers must pay to go where the work is.
Poilievre announced today that a New Conservative Government will change the Income Tax Act to bring fairness:
1. No more write-offs of luxury corporate jets. Corporations will be able to write off the equivalent of a commercial flight. Charter flights needed to get workers to remote job sites will not be impacted by this change.
2. Travelling trades workers will be able to write off the full cost of food, transportation and accommodation.”
With respect to trades persons’ deductions, there are a number of provisions under the Act, that currently deal with this such as paragraphs 8(1)(g), (h), (h.1) and (t). These provisions provide the conditions for certain motor vehicle costs and meal deductions but are subject to various restrictions such as a 50% restrictive deduction for meals (80% for certain long-haul truck drivers). With respect to the reference of $4,000 in the announcement, it appears to be referring to paragraph 8(1)(t) which allows for the deduction of temporary relocation expenses up to $4,000 if the tradesperson is required to temporarily relocate to perform their duties at a temporary work location that is not situated in the locality where they are ordinarily employed or carrying on business.
Given the above, it appears the intention of this announcement is to broaden the scope of allowable travel and meal deductions for workers by lifting the $4,000 ceiling under paragraph 8(1)(t) and removing the 50% / 80% deduction limitation for meals if they travel more than 120kms.
View Policy Video
Liberal Party
Date: April 5, 2025
Summary:
Expanded Labor Mobility Tax Deduction
Description & Comment:
The Liberals announced that they intend to:
“Expand the Labour Mobility Tax Deduction to ensure workers who travel more than 120 km from their home to a job site can deduct more of their expenses, and commit to significantly increasing the per-year tax deduction limit…We are also committed to significantly increasing the per-year tax deduction limit upon consultation with key industries.”
In order to be eligible for this deduction under paragraph 8(1)(t), the following conditions must be currently met:
• The relocation must be temporary and undertaken to enable the tradesperson to perform their duties at one or more temporary work locations situated in the same locality.
• The tradesperson must ordinarily reside at a residence in Canada before the relocation and must be away from their ordinary residence for at least 36 hours.
• The temporary lodging must be at least 150 kilometers closer to the temporary work location than the ordinary residence.
• If the above conditions are met, reasonable expenses incurred for temporary lodging, transportation for one round trip between the ordinary residence and the temporary lodging, and meals consumed during the round trip may be deducted to a maximum of $4,000 per year.
From the looks of this policy announcement, the only material adjustment from current law is to reduce the required km distance for eligibility from 150 km to 120 km. This is a copycat of the Conservative announcement of March 29, 2025. In addition, the Liberals will “consult” about what the limit for expenses should be instead of the current $4,000. In my view, that is a cop-out….the Conservatives have committed to remove the $4,000 limit entirely whereas the Liberals in this announcement are not committed to that.
View Policy
Summary:
Expanded Labor Mobility Tax Deduction
Description & Comment:
The Liberals announced that they intend to:
“Expand the Labour Mobility Tax Deduction to ensure workers who travel more than 120 km from their home to a job site can deduct more of their expenses, and commit to significantly increasing the per-year tax deduction limit…We are also committed to significantly increasing the per-year tax deduction limit upon consultation with key industries.”
In order to be eligible for this deduction under paragraph 8(1)(t), the following conditions must be currently met:
• The relocation must be temporary and undertaken to enable the tradesperson to perform their duties at one or more temporary work locations situated in the same locality.
• The tradesperson must ordinarily reside at a residence in Canada before the relocation and must be away from their ordinary residence for at least 36 hours.
• The temporary lodging must be at least 150 kilometers closer to the temporary work location than the ordinary residence.
• If the above conditions are met, reasonable expenses incurred for temporary lodging, transportation for one round trip between the ordinary residence and the temporary lodging, and meals consumed during the round trip may be deducted to a maximum of $4,000 per year.
From the looks of this policy announcement, the only material adjustment from current law is to reduce the required km distance for eligibility from 150 km to 120 km. This is a copycat of the Conservative announcement of March 29, 2025. In addition, the Liberals will “consult” about what the limit for expenses should be instead of the current $4,000. In my view, that is a cop-out….the Conservatives have committed to remove the $4,000 limit entirely whereas the Liberals in this announcement are not committed to that.
View Policy