OTTAWA — Effective on 2006 tax returns, truckers and other transportation workers can expense $17 per meal up to a maximum of $51 a day when claiming meal deductions.

The increase in the flat rates for the 2006 tax year reflects increases in the cost of restaurant meals since the rates were last adjusted in 2003, says Canada Revenue Agency.

The flat rates for meal expenses claimed for tax years 2003 to 2005 remain at $15 per meal to a maximum of $45 per day. A flat rate of $11 per meal to a maximum of $33 applies to any deductions claimed for tax years prior to 2003.

CRA keeps inching closer, but many truckers insist they should
be able to claim $73 a day for meals just like federal workers

Workers also have the option of keeping receipts and claiming actual meal expenses if they choose. However, the Income Tax Act only allows a deduction of 50 percent of either the flat rate or actual costs for eligible meals.

The simplified method using flat rates per meal is offered as a convenience to transport employees such as long distance truckers and bus drivers so that they do not have to keep receipts for meals, says CRA. The employee must still maintain a log of their trips to verify that they were eligible to claim meal expenses.

Revenue Canada increased the maximum from $33 a day to $45 in 2003 at the behest of the Canadian Trucking Alliance.

However, for many truckers who spend most of their days buying meals on the road, the hike won’t likely be enough.

Many drivers insist they should be reimbursed for more than just 50 percent of total meal expenses, citing Revenue Canada’s own federal employees as an example.

As Today’s Trucking reported in its latest October issue, a Summerland, B.C. lawyer launched a class-action suit on behalf of 2,200 truckers who insist they should be allowed to match Ottawa’s $73 daily tax free meal allowance for civil servants.

Although the claim was struck down by B.C. Superior Court, Attorney Tom Johnston is inviting truckers to take the case to the Supreme Court of Canada. (Click the Related Stories link below for more).

Our argument was that under the Charter, Sec 15 Equality section, one group of Canadians (federal government employees) are getting an entitlement not received by other Canadians and therefore in violation of the equality provisions of the charter,” says Johnston.