CRA Prescribed Form T2200 - Employment Expenses

Published date29 August 2022
Law FirmSpenceDrake Tax Law
AuthorMr Cris Best

When claiming employment expenses, an employee must ensure form T2200 is completed and signed by the employer. The T2200, a prescribed form pursuant to subsection 8(10) of the Income Tax Act, RSC 1985, c 1 (5th Supp) ('ITA'), requires the employer to provide information related to the employee's contractual conditions of employment.

For instance, did the contract of employment require the employee to pay for their own expenses? It is important this form is completed and signed by the employer and that the employee retains a copy. Otherwise, Canada Revenue Agency ('CRA') default position will likely be that the employment expenses cannot be claimed to reduce taxable income.

What if Form T2200 is Missing?

In general, the form requires the employer to confirm multiple facts that indicate the employee was required to pay for expenses related to their position of employment. For example, did they have to travel between various business locations?

On the form itself, it reads that it does not have to be filed with the respective tax return, though it must be available if CRA requests same. But what if it is missing? Subsection 8(10) of the ITA states that employment expenses will not be accepted unless 'a prescribed form, signed by the taxpayer's employer certifying that the conditions set out in the applicable provision were met in the year in respect of the taxpayer, is filed with the taxpayer's return of income for the year.'

According to subsection 220(2.1) of the ITA, where 'any provision of this Act or a regulation requires a person to file a prescribed form, receipt or other document, or to provide prescribed information, the Minister may waive the requirement...

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