Food as Fuel decution for foot and bicycle messengers in Canada is now
$15 per day.
December 7, 2004
Re: Self-Employed Foot and Bicycle Messengers
Deduction for Extra Food And
We are writing in response to your e-mail of November 15, 2004, wherein
you inquired whether there were any recent changes to the flat rate
amount that a self-employed foot and bicycle messenger could deduct for
extra food and beverages without supporting documentation.
As a result of the Federal Court of Appeal decision in Alan Wayne Scott v. Her Majesty The
Queen (1998 DTC 6530), foot and bicycle messengers and rickshaw
drivers can deduct the cost of extra food and beverages that are
consumed to enable them to carry on their business. Effective for 2003 and subsequent taxation
years, the flat rate has been increased to $15 per working day.
Alternatively, the actual expenses may be claimed provided the amounts
are supported by receipts. The flat
rate amount is based on the same rate that applies in respect of travel
expenses related to the northern residents deduction, medical, and
moving expenses and the deduction for meals by transport employees. All
future changes to this amount will apply to foot and bicycle couriers
and rickshaw drivers.
John Oulton, CA
Business and Partnerships Division
Income Tax Ruling Directorate
Policy and Planning Branch
Canada Revenue Agency