Deductions allowed for luncheon martinis but not food for fuel
Now Magazine, August 7, 1997
by Christina Varga
As a bike and foot courier for 15 years, Alan Wayne Scott estimates he has done the equivalent of circling the Earth five times.
But judge Donald H. Christie of the Canadian Tax Court ruled on July 29 that Scott cannot deduct from his income tax any of the extra food and drink it takes to fuel the estimated 200,000 kilometres he has pedalled in his job.
The ruling in an almost empty downtown courtroom was the latest step in what has been a 15-year legal odyssey for Scott.
During that time, he has been arguing that it’s unfair to allow people to deduct gas when dnving on businees, but not the extra food he says it takes to do his business by bike.
He has been supported by a coalition of couriers in his quest and a troika of city counciilors to boot.
"It’s ironic this decision came on the day a North American study pinpointed Ontario as the third- largest polluter in North America," says Scott, looking a tad uncomfortable in the dark suit he’s donned in place of his regular riding gear today in court. By allowing fuel deductions for cars, they are tacitly encouraging the use of cars, which foul up the atmosphere."
Scott, a tall, bald figurewith black-rimmed glasses and a ready smile, is dissappointed he won't be able to appeal Christie's decision. He mentions the broken collar bone and a back injury he's sustained as result of accidents on the job. The streets can be a mean place for couriers.
"We should be taken care of as well as anyone else," he says. "I don’t have unemployment insurance, benefits or worker’s compensation".
Scott calculates he needs 4,300 calories abouttwice the normal amount and $32.50 per day to fuel his body.
But Judge Christie ruled on a section of the Income Tax Act that doesn’t allow deductions for normal living expenses, like food and water.
The cost of eating has traditionally been viewed as a personal expense. "There are no provisions in the Income Tax Act to deduct personal expenses", says Bill Bennett, a spokesperson for the federal-finance department. The cost of staying alive is covered by the persona1 exemption.
But it seems the Bay Street boys can deduct the martinis they sometimes down with their business buddies. Business people are allowed to deduct the food and drink they have with clients.
"The court could not ignore the rules because (bike couriers) are more environmentally friendly," is the take of another finance department official who didn't want to be identified. But even if someone would want to accommodate this, it would be anightmare to administer. It would be easier to raise the cost of gasoline. Keep in mind, though, that gas is more heavily taxed than groceries."
Local city councillors Joe Pantalone, Jack Layton and Mario Silva wrote letters in support of Scott's efforts, acknowledging the contribution of bike and foot couriers to reducing traffic congestion and smog in Toronto.
"There are anti-enviromental implications to this decision and it puts bike couriers at a disadvantage," says Pantalone.
But there may be hope yet for Scott.
That's because the city of Toronto recently voted on initiatives to improve air quality, and one of the recommendations is the formation of a committee to look at alternatives to fossil fuels.
Priscilla Cranley of the Healthy City office says, "The anti-smog working group is looking at incentives, both tax, and other, to help clean up the air."
It turns out Scott has been invited to share his views before the committee makes its recommendations to the province and the feds.
Since he cannot appeal his ruling, Scott says, he'll be focusing his efforts on getting out his political message in the meantime.
"I guess I'll just have to change the law," he says.
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