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Bill C-241
- At third reading in the Senate
- Read Bill |
- Government Page
- This bill lets tradespeople and apprentices deduct travel expenses from their income tax if they work on a job site that is at least 120 km away from their home. This only applies if they had to pay for the expenses themselves and did not receive an allowance for it, and if they do not claim it as a deduction or a tax credit under any other provisions of the Income Tax Act. This rule applies starting from the 2022 taxation year.
- H1
- H2
- H3
- S1
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- RA
- Yea (192)
- Nay (148)
SteelmanSpren in Favour
- Allowing tradespersons and indentured apprentices to deduct travel expenses for work that is 120 km away from their ordinary place of residence is a wise move. These skilled workers often travel long distances to job sites and incur significant expenses along the way. Allowing them to claim these expenses as a deduction is merely fair compensation for their labor and encourages them to take on more job opportunities despite the distance. It also gives them more financial flexibility and can help support the growth of the skilled trades industry in Canada. This bill is crucial to ensuring that these hardworking individuals are supported and valued in their profession.
SteelmanSpren Against
- One possible steelman argument opposing this bill is that it may disproportionately benefit higher income tradespeople who can afford to travel longer distances for work, while leaving out lower income tradespeople who cannot afford to do so. Additionally, the deduction may encourage tradespeople to seek work farther away from home, contributing to urban sprawl and environmental issues related to transportation emissions. Lastly, this deduction may create administrative burdens for the Canada Revenue Agency in verifying the validity of travel expense claims and may lead to potential abuse by employers in artificially inflating travel expenses for their employees.
Senate Motion No. 638760
- Bill C-241
- Latest: Second reading in the Senate
Senate Committee
- Fourteenth Report
The Standing Senate Committee on National Finance has the honour to present its
FOURTEENTH REPORT
Your committee, to which was referred Bill C-241, An Act to amend the Income Tax Act (deduction of travel expenses for tradespersons), has, in obedience to the order of reference of Thursday, June 8, 2023, examined the said bill and now reports the same without amendment but with certain observations, which are appended to this report.
Respectfully submitted,
PERCY MOCKLER
Chair
Observations to the Fourteenth Report of the Standing Senate Committee on National Finance (Bill C-241)
Your committee agrees, in principle, with the intended goals of Bill C-241 especially in light of the chronic housing shortages across Canada. This bill provides greater financial incentives for tradespeople and apprentices to travel for work than the existing Labour Mobility Deduction for Tradespeople.
However, the Committee would like to highlight that the Parliamentary Budget Officer testified on October 24, 2023, that Bill C-241 “could cause confusion for taxpayers forced to choose between two nearly identical deductions that serve the same purpose” and “could result in administrative complications for the Canada Revenue Agency.” Representatives from the Department of Finance Canada made similar points.
Moreover, members of the Committee expressed concerns about the lack of clear definitions and guidelines set out in the bill which include no minimum period of relocation, no definition of what constitutes “construction activity” or “travel expenses” and no requirement for income earned from the jobs they travel for.
- Hear!
- Rabble!
Senate Committee
- Tue Nov 28, 2023 09:00 - 11:00 EST
- Read
- Watch
- Hear!
- Rabble!
House Debates
Senate Committee
- Tue Nov 21, 2023 09:00 - 11:00 EST
- Read
- Watch
- Hear!
- Rabble!
House Debates
Senate Committee
- Tue Oct 24, 2023 09:00 - 11:00 EST
- Read
- Watch
- Hear!
- Rabble!
- June 8, 2023, 2 p.m.
- In Progress
- Read
House Debates
- March 28, 2023, 2 p.m.
- Passed
- March 28, 2023, 2 p.m.
- Passed
House Debates
House Debates
House Debates
- Feb. 13, 2023, 11 a.m.
- Passed
House Debates
House Committee
- Report 9 presented to the House
In accordance with its Order of Reference of Wednesday, June 8, 2022, your Committee has considered Bill C-241, An Act to amend the Income Tax Act (deduction of travel expenses for tradespersons), and agreed on Monday, December 5, 2022, to report it without amendment. A copy of the relevant Minutes of Proceedings (Meetings Nos. 66 and 71) is tabled.
- Hear!
- Rabble!
House Committee
- Hear!
- Rabble!
House Debates
House Committee
- Hear!
- Rabble!