Changes coming to the lowest return airfare requirement

We are proposing to simplify how northern residents determine and document the lowest return airfare in relation to a trip. Canadians had the chance to tell us what they thought.

Thank you to all those who provided feedback on this proposed regulatory amendment. The consultation closed on April 17, 2019 and your feedback is being considered.

Document the cost of travel before you go

To claim the travel benefits deduction portion of the northern residents deductions, individuals have to determine and document the cost of a return economy airfare in relation to their trip, even if the trip does not involve air travel.

Under the proposed simplified requirement, this documentation can be dated within a reasonable amount of time of when the trip is made, but has to be for the date travelled.

For example, a claimant could get the airfare amount for the day of travel from a website in the days leading up to a trip. This change would eliminate both the need to get a quote on the day of travel and to ensure that it is the lowest available.

Related links

• Making it easier for northern residents to claim lowest return airfare
• Consultation on the Lowest Return Airfare Requirement
• Canada Revenue Agency consultations with northern residents
• Northern Residents Deductions for 2018
• Forward Regulatory Plan – Northern Residents Deductions
• News Release, August 24, 2018 – Minister Lebouthillier announces the opening of three Canada Revenue Agency Northern Service Centres