Patrick de Kruyff’s recent triumph over the Canada Revenue Agency (CRA) at the Tax Court of Canada centers around a straightforward question: Why would anyone recommend taking Toronto’s Don Valley Parkway during rush hour? The answer: an auditor in Vancouver.
De Kruyff, a financial advisor based in Toronto, reluctantly uses the term “smoking gun” to describe the critical finding that aided him in winning a five-year battle with the CRA to approve his request to deduct relocation expenses after he relocated closer to his workplace in 2020. The key requirement for the deduction is that the move must reduce the daily commute by at least 40 kilometers.
Despite inputting the same coordinates into Google Maps at the same rush hour time of 4:45 p.m., de Kruyff and the CRA were receiving significantly different route suggestions. The revelation that the CRA’s employee in British Columbia was using Google Maps set to Pacific time zone during Toronto rush hour at 7:45 p.m. Eastern time led to a groundbreaking ruling that could benefit other urban commuters seeking tax relief.
Judge Randall Bocock of the Tax Court of Canada emphasized the disparity in traffic conditions on the Don Valley Parkway/404 between 4:45 p.m. and 7:45 p.m. on a typical weekday. The ruling not only favored de Kruyff but also acknowledged the utilization of Google Maps to determine “the shortest normal route” for meeting the 40-kilometer threshold for relocation expenses claims.
De Kruyff’s move from Newmarket to Mississauga in early 2020 was motivated by his daily commute to downtown Toronto, where flexible work hours were not an option. The $130,000 relocation expenses he incurred included costs like estate agent commissions and land transfer fees, which some homeowners may overlook when making relocation tax claims.
The case underscores the evolution of Canada’s Income Tax Act provisions, adapting to the complexities of urban cities and commuters’ experiences, where the shortest distance between two points may not always be the quickest route. De Kruyff’s successful battle with the CRA not only benefited him but also potentially sets a precedent for others navigating relocation expense claims in the future.