Ottawa wants to facilitate tax deductions for flights in remote areas

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Ottawa wants to facilitate tax deductions for flights in remote areas

Residents of remote areas will no longer have to check airline ticket prices with airlines. (File photo)

The federal government has released an official airfare table to make it easier for residents of remote areas to get a tax deduction.

National Revenue Minister Diane Lebouthillier announced the pilot project on Monday, along with Yukon Liberal MP Brendan Hanley.

Airfare chart released by the Canada Revenue Agency shows the lowest price for a ticket from 135 designated regional airports.

A resident of a remote region can therefore refer to it to complete his deduction request, rather than having to check with the air carriers himself.

Indicate the lowest price expensive for a round-trip plane ticket is part of the requirements of the Revenue Agency to determine the deduction to which residents are entitled.

Finding out about prices and the cheapest round-trip airfare when making a trip is not always easy. It is this part of the equation that the agency has just settled by proposing this new simplified formula, explained Minister Lebouthillier at a press conference on Monday.

The Minister of National Revenue, Diane Lebouthillier. (File photo)

To ensure that the prices are as accurate as possible, the Revenue Agency will publish two tables per year, in April and October.

When claiming a tax deduction, residents of remote areas will still be able to indicate an amount that differs from the table produced by the CRA. However, they will have to keep their proof of purchases in the event of a request for review by the government.

The deduction only applies to residents of a region remote and their family members.

As for the number of eligible trips per person, it is limited to two per year, with the exception of trips made for medical reasons, which are not subject to any limit.

The pilot project is in place for this tax season, but the Revenue Agency intends to refine the model over time.

We really want things to happen quickly and the right way. This year, it will allow us to make the adjustments, to get it out of a pilot project, and for it to become permanent , explained Minister Diane Lebouthillier.

Yukon Liberal MP Brendan Hanley welcomed the announcement, which he says is beneficial for northerners.

Brendan Hanley, recalls the importance of completing his tax returns to be entitled to the tax deductions reserved for residents of the North. (File photo)

The latter also confirmed the reopening of the Revenue Agency offices in Whitehorse for tax time, as it was before the pandemic .

It makes it easier for Yukoners and others in the affected areas to claim travel deductions, and ensures northerners get and know about all the tax benefits to which they are entitled, he said. .

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