Canada ( Attorney General ) v. MacDonald
A-1523-92
Linden J.A.
23/3/94
7 pp.
Application for judicial review of Tax Court's decision monthly housing subsidy not taxable allowance-Respondent, member of RCMP, transferred from Regina to Toronto and received $700 each month as housing subsidy by Department of Supply and Services-Respondent not including housing subsidy in income on tax return-Case law has defined allowance in Income Tax Act, s. 6(1)(b) as composed of three elements constituting allowance: (1) arbitrary amount i.e. predetermined sum set without specific reference to any actual expense or cost; (2) encompassing allowances for personal or living expenses, for specific purpose; (3) allowance in discretion of recipient because no need to account for expenditure of funds towards actual expense or cost-Housing subsidy has all legal characteristics of taxable allowance, meeting three elements above; not case of reimbursement for particular expense-Allowance "hidden" or "concealed increase in remuneration" which must be treated as income-Application allowed-Income Tax Act, S.C. 1970-71-72, c. 63, s. 6(1)(b).