|
|
|
NEWS FRONT - Food is Fuel
by Richard Cairney
A Federal Court of Appeal ruling that allows a courier to claim the cost of food he eats during the day has couriers across the country rejoicing, and saving their lunch receipts. Wayne Scott, a foot courier who works in Toronto, won his battle against Revenue Canada last week. Scott argued that because couriers who drive vehicles can claim gasoline as a cost of doing work, foot couriers and bicycle couriers should be able to claim the cost of food as fuel. Revenue Canada is reviewing the decision with the federal Justice department and has 60 days to file an appeal, says Revenue Canada spokesperson Colette Gentes-Hawn. She says a fundamental rule of income tax comes into play in the case: "If you had to spend money to make money . . . you get a deduction for that," she said. And while couriers can claim gasoline, food is considered a personal expense and is not deductible, she adds. But auditors could see more couriers attempting to claim such expenses. Bicycle couriers working in Edmonton's downtown core were elated by news of Scott's courtroom victory. "I think it definitely makes sense," said courier Rob Laplante. "You consume calories at a much higher rate when you're on a bike all day . . . we work pretty hard and food is a fuel." Laplante says a courier can log as much as 50 kilometres a day. He spends between $5 and $10 per day on food. "I kind of put a cap on it but you need to buy food - you can't carry along a lunch. You can't carry sandwiches with you. Or bring a thermos. You show up with your backpack and that's it." There are other expenses. At present, bicycle couriers claim costs of bicycle equipment and repairs, as well as the price of renting portable radios to receive assignments. But efforts to claim food expenses have always been denied. "I think I did tell my accountant to try it once and he just laughed at me," said Slotman, a courier who spends up to $15 a day on food. Courier Chad Hemphill says he already takes full advantage of deductions Revenue Canada allows. "I claim everything on my bike, everything on me, everything from clothes to watches to sunglasses," he said, adding that he'll start saving food receipts in case the appeal court's decision stands. Michael Lyon, operations manager for A.C.S. Express Messenger Service, hopes the decision remains in force. "I have to agree with the judgment from the court as far as being able to write off a portion of your food if you are a bike courier or a walker in the downtown core. Because any of our other drivers write off their fuel for their cars," he said. But he feels Revenue Canada auditors could have a hard time drawing a line in such cases. "I know (bicycle couriers) can write off tires, rims, things of that nature that are directly work related, but where do you draw the line if it's food?" Deanna Muise, a chartered accountant with the firm of Kingston Ross Pasnak, agrees that line could be blurry. With rickshaw drivers in Toronto already vowing they'll claim expenses, such as food and footwear, the ruling could create a lot of confusion. But Revenue Canada has some options, she observes. The department could conduct a large audit sample of couriers to find average expenses, then publish guidelines, for example. Regardless of what Revenue Canada does, Muise feels the couriers have a strong argument. In the Toronto case, Scott argued he should be able to deduct the cost of one meal a day - an amount he attributes directly to his work. The court did make the distinction between couriers and other occupations that require strenuous physical work. "A courier burns fuels similar to burning fuel in a vehicle and (the court decision) doesn't say they can deduct all their food and liquids - only their extra, over and above what the average person needs," she said. But it's important that couriers remember the decision has limited impact. "I don't think this is a really broad decision that will open this up to everyone and anyone," she said. "It will be restricted to (couriers). It's
not open season on deducting extra quantities of food."
|
|