News Release

Drivers’ receipt-free meal allowance increased to $45 per day

CCRA adjusts limit from $33, following court decisions and pressure from industry

Ottawa – October 24, 2003. David Bradley, CEO of the Canadian Trucking

Alliance (CTA) applauded this week’s decision by CCRA to increase the receipt-free meal allowance truck drivers can claim on their tax returns. ”It’s a victory for hundreds of thousands of hard working truck drivers,” said Bradley. For many years, the limit was fixed at $33 per day, but CCRA started to re-examine this policy when a tax court decision in 2000 allowed a driver to claim a more realistic level. At that time, CTA opened discussions with CCRA to push for a permanent change in the receipt-free limit.
Starting with the 2003 tax year, drivers who elect not to claim a meal expense deduction based on actual receipts will be allowed to use the rate of $15 per meal up to a maximum of $45 per day. As well, drivers travelling and incurring meal expenses in the United States may now use the rate of US$15 per meal up to a maximum of US$45 a day, converted to Canadian dollars.
“CTA has been working with CCRA for several years to bring about these changes to the receipt-free allowance,” said Bradley. “In addition, the ability of our drivers to claim meals purchased in the United States in US dollars will be of considerable benefit, considering that over 75,000 Canadian drivers are regularly involved in cross-border trucking.”
However, the good news is tempered by the fact that meal expenses – whether based on receipts or on the new daily allowance – can be deducted at a rate of only 50 per cent on drivers’ income tax returns. Bradley remains concerned, that when it comes to this tax deductibility limit, Canadian truck drivers remain at a disadvantage compared to their US counterparts. “Something must be done about the fact that in Canada only 50 percent of meal costs can be deducted whereas in the US, the original level of 80 percent is being phased in,” said Bradley.
“For years, CTA has been pushing the Department of Finance to restore an 80 percent deductibility limit for Canadian drivers, but so far our pleas have fallen on deaf ears. We will keep pushing for change, as drivers – particularly those who spend nights on the road – have no choice but to buy their meals in restaurants and truck stops. This is a very different situation from someone who works in an office and buys the occasional business lunch,” he added.

Canadian Trucking Alliance 130 Slater St., Suite 1025 Ottawa, Canada K1P 6E2 Ph: (613) 236-9426 Fax: (613) 563-2701

CONTACT:
Elly Meister Vice President, Public Affairs(613) 236-9426 or Rebecka Torn Director, Communications (CTA Toronto Office)(416) 249-7401

The Canadian Trucking Alliance is a federation of the seven Canadian provincial trucking associations representing approximately 4,000 motor carriers and is dedicated to serving the national and international interests of Canadian motor carriers.
###