Tax wiki
s. 110.7
PART I — Income Tax · DIVISION C — Computation of Taxable Income · Lump-sum Payments
Residing in prescribed zone
Not yet annotated · Text current to 2026-06-21 · section last amended 2022-06-09
Current text
Where, throughout a period (in this section referred to as the “qualifying period”) of not less than 6 consecutive months beginning or ending in a taxation year, a taxpayer who is an individual has resided in one or more particular areas each of which is a prescribed northern zone or prescribed intermediate zone for the year and files for the year a claim in prescribed form, there may be deducted in computing the taxpayer’s taxable income for the year
the total of all amounts each of which is the amount, in respect of a particular period during the taxation year, determined by the formula
A × B
where
is the specified percentage for the particular area in which the taxpayer resided during the particular period, and
is the total trip costs to the taxpayer in respect of trips that begin during the particular period; and
the lesser of
20% of the taxpayer’s income for the year, and
the total of all amounts each of which is the product obtained by multiplying the specified percentage for a particular area for the year in which the taxpayer so resided by the total of
$11.00 multiplied by the number of days in the year included in the qualifying period in which the taxpayer resided in the particular area, and
$11.00 multiplied by the number of days in the year included in that portion of the qualifying period throughout which the taxpayer maintained and resided in a self-contained domestic establishment in the particular area (except any day included in computing a deduction claimed under this paragraph by another person who resided on that day in the establishment).
Specified percentage
(2)For the purpose of subsection 110.7(1), the specified percentage for a particular area for a taxation year is
where the area is a prescribed northern zone for the year, 100%; and
where the area is a prescribed intermediate zone for the year, 50%.
Restriction
(3)The total of all amounts determined under paragraph (1)(a) for all taxpayers in a taxation year in respect of an individual shall not be in respect of more than two trips made by the individual that begin in the year (other than trips to obtain medical services that are not available in the locality in which the taxpayer resided).
Additional restrictions
(3.1)For the purpose of paragraph (1)(a), an amount may only be included in the amount determined for B for a particular area for a taxation year if
the amount is not otherwise deducted in computing the income for any taxation year of any individual (except by an employer under section 9 if it is included in an employee’s income);
the amount is not included in determining an amount deducted under subsection 118.2(1) for any taxation year;
the amount is in respect of trips made by the taxpayer or an eligible family member of the taxpayer that begin during the part of the year in which the taxpayer resided in the particular area; and
neither the taxpayer nor an eligible family member of the taxpayer is at any time entitled to a reimbursement or any form of assistance (other than a reimbursement or assistance included in computing the income of the taxpayer or the eligible family member) in respect of trips to which paragraph (c) applies.
Additional restriction
(3.2)If all amounts determined under paragraph 7304(2)(a) of the Income Tax Regulations are nil in respect of trips (beginning in the taxation year) made by an individual, the total of all amounts determined for B in paragraph (1)(a) in the taxation year for all taxpayers in respect of the individual must not exceed the standard amount for the individual for the taxation year.
Deemed standard amount
(3.3)If an employer-provided travel benefit was claimed by a taxpayer in respect of an individual in respect of the taxation year, the standard amount for the individual is deemed to be nil for the taxation year.
Board and lodging allowances, etc.
(4)The amount determined under subparagraph (1)(b)(ii) for a particular area for a taxpayer for a taxation year shall not exceed the amount by which the amount otherwise determined under that subparagraph for the particular area for the year exceeds the value of, or an allowance in respect of expenses incurred by the taxpayer for, the taxpayer’s board and lodging in the particular area (other than at a work site described in paragraph 67.1(2)(e)) that
would, but for subparagraph 6(6)(a)(i), be included in computing the taxpayer’s income for the year; and
can reasonably be considered to be attributable to that portion of the qualifying period that is in the year and during which the taxpayer maintained a self-contained domestic establishment as the taxpayer’s principal place of residence in an area other than a prescribed northern zone or a prescribed intermediate zone for the year.
Idem
(5)Where on any day an individual resides in more than one particular area referred to in subsection 110.7(1), for the purpose of that subsection, the individual shall be deemed to reside in only one such area on that day.
Definitions
(6)The following definitions apply in this section.
eligible family member of a taxpayer, at any time, means a member of the taxpayer’s household who is at that time
the taxpayer’s spouse or common-law partner;
a child of the taxpayer (including a child of the taxpayer’s spouse or common-law partner) under the age of 18; or
another individual who is
related to the taxpayer,
wholly dependent for support on the taxpayer, the taxpayer’s spouse or common-law partner, or both of them, and
except in the case of a parent or grandparent of the taxpayer, so dependent by reason of mental or physical infirmity. (membre de la famille admissible)
employer-provided travel benefits, to a taxpayer in respect of a trip made by the taxpayer or their eligible family member, means the total amount of
the value of travel assistance, if any, provided to the taxpayer in respect of the taxpayer’s employment in respect of travel expenses for the trip; and
the amount, if any, received by the taxpayer in respect of the taxpayer’s employment in respect of travel expenses for the trip. (avantages relatifs aux voyages tirés de l’emploi)
standard amount, for an individual for a taxation year and subject to subsection (3.3), means $1,200. (montant forfaitaire)
trip cost has the meaning prescribed by regulation. (frais de voyage)
Source: Justice Laws Website. Not an official version.
Historic text
Immediately preceding version, in force from 2016-06-22 to 2022-06-08:
Show the text in force 2016-06-22 to 2022-06-08
Residing in prescribed zone
110.7 (1) Where, throughout a period (in this section referred to as the “qualifying period”) of not less than 6 consecutive months beginning or ending in a taxation year, a taxpayer who is an individual has resided in one or more particular areas each of which is a prescribed northern zone or prescribed intermediate zone for the year and files for the year a claim in prescribed form, there may be deducted in computing the taxpayer’s taxable income for the year
(a) the total of all amounts each of which is the product obtained by multiplying the specified percentage for a particular area for the year in which the taxpayer so resided by an amount received, or the value of a benefit received or enjoyed, in the year by the taxpayer in respect of the taxpayer’s employment in the particular area by a person with whom the taxpayer was dealing at arm’s length in respect of travel expenses incurred by the taxpayer or another individual who was a member of the taxpayer’s household during the part of the year in which the taxpayer resided in the particular area, to the extent that
(i) the amount received or the value of the benefit, as the case may be,
(A) does not exceed a prescribed amount in respect of the taxpayer for the period in the year in which the taxpayer resided in the particular area,
(B) is included and is not otherwise deducted in computing the taxpayer’s income for the year or any other taxation year, and
(C) is not included in determining an amount deducted under subsection 118.2(1) for the year or any other taxation year,
(ii) the travel expenses were incurred in respect of trips made in the year by the taxpayer or another individual who was a member of the taxpayer’s household during the part of the year in which the taxpayer resided in the particular area, and
(iii) neither the taxpayer nor a member of the taxpayer’s household is at any time entitled to a reimbursement or any form of assistance (other than a reimbursement or assistance included in computing the income of the taxpayer or the member) in respect of travel expenses to which subparagraph 110.7(1)(a)(ii) applies; and
(b) the lesser of
(i) 20% of the taxpayer’s income for the year, and
(ii) the total of all amounts each of which is the product obtained by multiplying the specified percentage for a particular area for the year in which the taxpayer so resided by the total of
(A) $11.00 multiplied by the number of days in the year included in the qualifying period in which the taxpayer resided in the particular area, and
(B) $11.00 multiplied by the number of days in the year included in that portion of the qualifying period throughout which the taxpayer maintained and resided in a self-contained domestic establishment in the particular area (except any day included in computing a deduction claimed under this paragraph by another person who resided on that day in the establishment).
Specified percentage
(2) For the purpose of subsection 110.7(1), the specified percentage for a particular area for a taxation year is
(a) where the area is a prescribed northern zone for the year, 100%; and
(b) where the area is a prescribed intermediate zone for the year, 50%.
Restriction
(3) The total determined under paragraph 110.7(1)(a) for a taxpayer in respect of travel expenses incurred in a taxation year in respect of an individual shall not be in respect of more than 2 trips made by the individual in the year, other than trips to obtain medical services that are not available in the locality in which the taxpayer resided.
Board and lodging allowances, etc.
(4) The amount determined under subparagraph (1)(b)(ii) for a particular area for a taxpayer for a taxation year shall not exceed the amount by which the amount otherwise determined under that subparagraph for the particular area for the year exceeds the value of, or an allowance in respect of expenses incurred by the taxpayer for, the taxpayer’s board and lodging in the particular area (other than at a work site described in paragraph 67.1(2)(e)) that
(a) would, but for subparagraph 6(6)(a)(i), be included in computing the taxpayer’s income for the year; and
(b) can reasonably be considered to be attributable to that portion of the qualifying period that is in the year and during which the taxpayer maintained a self-contained domestic establishment as the taxpayer’s principal place of residence in an area other than a prescribed northern zone or a prescribed intermediate zone for the year.
Idem
(5) Where on any day an individual resides in more than one particular area referred to in subsection 110.7(1), for the purpose of that subsection, the individual shall be deemed to reside in only one such area on that day.
- [NOTE: Application provisions are not included in the consolidated text
- see relevant amending Acts and regulations.]
- R.S., 1985, c. 1 (5th Supp.), s. 110.7
- 1994, c. 7, Sch. II, s. 82, Sch. VIII, s. 48
- 1999, c. 22, s. 27
- 2008, c. 28, s. 13
- 2016, c. 7, s. 13
Earlier versions: Justice Laws point-in-time versions of the Act (from 31 August 2004), and CanLII (under “Versions”). On Justice Laws, each version of section 110.7 links to the one before it.
Enacting and amending legislation
- R.S., 1985, c. 1 (5th Supp.), s. 110.7; 1994, c. 7, Sch. II, s. 82, Sch. VIII, s. 48; 1999, c. 22, s. 27; 2008, c. 28, s. 13; 2016, c. 7, s. 13
- 2022, c. 5, s. 3
Text before 2004 is found in the annual Statutes of Canada cited above. Application and coming-into-force provisions are not part of the consolidation; see the amending Acts.
Cross-references
Citation
Income Tax Act, R.S.C. 1985, c. 1 (5th Supp.), s. 110.7.