CIMS Deducting CPP and EI premiums from initial and terminal travel allowance.

This is the most recent info from the tax lawyer.

Hi Geoff,

I have received no correspondence from CRA. The last communication I saw was the abeyance letter you sent me in August.

The CPP and EI treatment should follow that for income tax purposes. The members’ argument was that neither income tax, nor CPP, nor EI should have been deducted. But if CIMS is deducting income tax, then logically they would deduct CPP and EI too, although your members maintain that this is the incorrect result at law (as set out in the income tax, CPP and EI appeals arguments I drafted for you).

Kind regards,

Gareth.

Travel Allowance Rates 2019

Be reminded that travel allowance rates are now 58 cents per kilometre for the first 5000 km and 52 cents per kilometre for every kilometre after that. As of January 1st 2019.