Canada Revenue Agency increases lump sum for meal reimbursement claims and a reasonable amount for meal allowances and allowances


OTTAWA, ON, September 3, 2020 / CNW / – Today, the Honorable Marc Garneau, Minister of Transport, on behalf of the Honorable Diane Lebouthillier, Minister of National Revenue, announced that the Canada Revenue Agency (CRA) has increased the amount that employers can use to determine whether the overtime meal or allowance, or the meal portion of a travel allowance is taxable, from $ 17 To 23 $. The CRA has also increased the rate at which transportation workers and others can claim meal expenses, using the simplified method (a flat rate per person), from $ 17 To 23 $ per meal. These increases are effective immediately and retroactively from January 1, 2020.

Since the start of the COVID-19 pandemic, essential workers across Canada have worked tirelessly to ensure that Canadians are safe and always have access to the goods and services they need. The increase in the amount of meal reimbursement claims and meal benefits or allowances ensures that all employees, including our essential workers, can access meals that meet today’s inflation, while continuing to provide services that support Canadians during this pandemic.

CRA policies on taxable benefits and allowances allow an employer to exclude the value of a meal or overtime allowance, or certain travel allowances (including a meal portion), from the an employee’s income as long as the value is reasonable (among other conditions). If all the conditions are met, the employer does not need to report the value of the meal or allowance on the employee’s T4 slip.

When claiming meal expenses on a personal income tax and benefit return, the CRA allows transportation employees and individuals claiming moving expenses, medical expenses, or the northern residents deduction to calculate their request for meal expenses using the simplified method. This method is the simplest way to calculate meal expenses because it is based on a flat rate and individuals do not have to keep receipts for their meals.

The $ 17 The value of these policies was last updated in 2009. These increases provide more flexibility and now accurately represent the average cost of a meal today, ensuring that Canadian taxpayers can take full advantage of their compensation. meal, allowance or claim.

Further information on the increased amounts and their impact on employers and / or employees will be available in the coming weeks, including in the following publications:


“Updating our policies is an integral part of our People First philosophy of putting Canadians at the center of everything we do. The increase in the reasonable amount for meal allowances and allowances, as well as the lump sum for meal expenses, demonstrates the CRA’s commitment to ensuring that our tax system is fair and meets the needs of Canadians. today.
The Honorable Diane Lebouthillier, Minister of National Revenue

“This is an important measure to support from Canada employees in the transportation sector, in particular our truck drivers. Canadians owe a great deal to the tireless work of from Canada truckers, especially during the COVID-19 pandemic. These increased meal allowance rates will ensure that truckers and other essential workers can access affordable meals when they are traveling long distances, carrying essential goods and supplies. ”
The Honorable Marc Garneau, Minister of Transport

Fast facts

  • from Canada long-standing taxable benefit guidelines apply to all employers, regardless of industry or community.
  • The CRA first published its administrative policy on meals or overtime allowances in Guide T4130 in 1999, indicating that the meal or allowance should be reasonable.
  • In 2009, the CRA updated its administrative policy to clarify that $ 17 is generally defined as a reasonable amount.

Related links
Guide T4130, Employers’ Guide – Taxable Benefits and Allowances
Meals or overtime allowances
Travel allowance
Guide T4044, Employment Expenses
Meals and accommodation (including showers) – Simplified method

Stay connected

SOURCE Canada Revenue Agency

For further information: Jeremy Bellefeuille, Press Secretary, Office of the Minister of National Revenue, 343-551-0898, [email protected]; Media Relations, Canada Revenue Agency, 613-948-8366, [email protected]

Related links

Source link


Leave A Reply