2021 R10 – Income Tax Credit/Deduction for Workers in Isolated Areas
- Year: 2021
- AVICC Number: R10
- UBCM Number: EB24
- Port Hardy
Whereas it is challenging to attract and retain employees in isolated communities due to a lack of services and the extra cost to obtain these services elsewhere;
And whereas the provincial government has recognized the need to compensate provincial employees through an isolation allowance, which includes additional pay and vacation allowances for employees who work in posted isolated location points:
Therefore be it resolved that the UBCM lobby the provincial government to provide a tax credit/deduction to workers living in communities that are included in the Province’s list of posted isolated location points.
- Year: 2021
- AVICC Number: R10
- Sponsor: Port Hardy
- Resolution Type: Provincial
- Category: Finance
- AVICC Decision: Endorsed
- AVICC Action: Forwarded to UBCM
- AVICC Response link
- UBCM Number: EB24
- UBCM Decision: Endorsed
- Provincial Response:Ministry of Finance Government recognizes the challenges that British Columbians living in remote areas of the province face. Under the tax collection agreement with the Government of Canada, BC must adopt the federal definition of taxable income and this prevents the implementation of a tax deduction. Eligible individuals can deduct from their income a northern resident allowance for income tax purposes if they live in the northern and intermediate zones. They may also be able to deduct some of the cost of travel to or from their residence if the travel costs were provided by their employers and included in their income. The Province does not currently have plans to introduce a provincial tax credit for individuals residing in a rural area. However, this resolution has been forwarded to Ministry of Finance staff for further review and analysis. As well, travel costs for medical purposes may be claimed under the medical expense tax credit. There are also some income tax deductions available related to employment, including deductions for accommodation and travel.
- UBCM Response link
The AVICC acknowledges that we are grateful to live, work, and play on the traditional territories of theCoast Salish, Nuu-Chah-Nulth and Kwak-Waka’wakw Peoples