As a general rule, the Canada Revenue Agency considers the cost of driving back and forth between home and work as a personal expense.
Therefore, logically, the travelling to and from his home should be considered “related to his employment” and not personal in nature. Over the years, however, there have been a number of cases that have recognized exceptions to the general rule, such as when a taxpayer’s home was found to be an essential place of business, as mandated by their employer. He would then drive to the assigned worksite and ensure that his crew was set up and organized for work. The taxpayer used a designated spot in his garage to store and repair his employer’s tools, equipment and materials. The sole issue in the case, therefore, was whether these remaining motor vehicle expenses which were incurred by the taxpayer while travelling from his home to various worksites of his employer (and vice versa) were properly deductible under the Income Tax Act. The recent case involved a taxpayer who was employed as a construction foreman.