CRA Audit of Moving Expenses


CRA Audits Moving Expenses

CRA Audits Moving Expenses

CRA audit of moving expenses

The Canada Revenue Agency (CRA) allows taxpayers to deduct moving expenses if they move closer to work or school. To qualify, the new residence should be at least 40 kilometers closer to work or school (measured by the shortest usual public route).

In the case of Trudy Hauser (Taxpayer) vs. Her Majesty The Queen (The Crown), the CRA audited the moving expenses of the taxpayer.  The main argument became how each of the parties were measuring the distance between the old home and the new place of work. The Crown had measured the distance using an urban route, which was the shortest distance. The Taxpayer had measured the distance using a rural route, which was the fastest route. The Taxpayer had indicated that the urban route was inefficient because of the construction on the route.

Despite the Taxpayers testimony and evidence The Tax Court sided with the Canada Revenue Agency and concluded that the urban route is the most appropriate route to measure the distance between the new place of work and the old home.

Read more about Trudy Hauser  case – CRA Audit of Moving Expenses below:

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Audit & Appeal

Our team is dedicated to assist you in all your CRA appeals. We make sure that your company’s tax audit is handled smoothly and efficiently. We can assist you with the tax audit process starting from the information gathering stage to negotiation with the tax authorities. We can also help in negotiating payments and even apply for interest or penalty relief.

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