" The CRA's general views regarding subsection 81(3) of the Act
are contained in Interpretation
Bulletin IT-292, Taxation of elected Officers of Incorporated
Municipalities, School boards,
Municipal Commissions and Similar Bodies. As noted in paragraph
6 of IT-292, where
a particular municipal act deems a proportion of the total
remuneration paid to an elected
member of a municipal council to be an allowance for expense, it is
the CRA's policy
that the proportion so deemed (up to one third of the total paid) will
be accepted as an
expense allowance. This treatment will apply notwithstanding
remuneration to salary, indemnity,
allowance or other remuneration. Further, paragraph three of
IT-292 states that for
purposes of determining the amount available for the exemption,
"the total of the amounts
received" should be used. Accordingly,
an amount reimbursed for a meal received during
city council meetings would be included in the total remuneration
determination resulting in
one third being tax exempt under subsection 81(3) of the
Act.