C-241
First Session, Thirty-ninth Parliament,
55 Elizabeth II, 2006
HOUSE OF COMMONS OF CANADA
BILL C-241
An Act to amend the Income Tax Act (deductibility of expense of tools provided as a requirement of employment)
first reading, May 1, 2006
Mr. Stoffer
391012
SUMMARY
The purpose of this enactment is to allow employees to deduct the cost of providing tools needed in the course of their employment if they are required to do so by the employer as a condition of employment. The deduction includes an allowance in respect of the capital cost of the tools and rental, maintenance and insurance expenses.
Regulations would set the appropriate depreciation rates applicable to the capital costs for various types of tools.
Also available on the Parliament of Canada Web Site at the following address:http://www.parl.gc.ca
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1st Session, 39th Parliament,
55 Elizabeth II, 2006
house of commons of canada
BILL C-241
An Act to amend the Income Tax Act (deductibility of expense of tools provided as a requirement of employment)
R.S., c. 1
(5th Supp.)
Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
1. (1) Subsection 8(1) of the Income Tax Act is amended by striking out the word “and” at the end of paragraph (q), by adding the word “and” at the end of paragraph (r) and by adding the following after paragraph (r):
(s) if the taxpayer was employed in the year and, as a term of the employment, was required to provide any of the tools needed in the course of the employment for a period in the year, an amount (not exceeding the taxpayer’s income for the year from the employment, computed without reference to this paragraph) equal to the total of 
(i) the amounts expended by the taxpayer before the end of the year for the maintenance, rental or insurance of the tools for that period, except to the extent that the amounts are otherwise deducted in computing the taxpayer’s income for any taxation year, and
(ii) such part, if any, of the capital cost to the taxpayer of the tools as is allowed by regulation.
(2) Subsection (1) applies to the 2005 and subsequent taxation years.
Published under authority of the Speaker of the House of CommonsAvailable from:Publishing and Depository ServicesPublic Works and Government Services CanadaOttawa, Ontario K1A 0S5Telephone: (613) 941-5995 or 1-800-635-7943Fax: (613) 954-5779 or 1-800-565-7757publications@pwgsc.gc.cahttp://publications.gc.ca