CRA denied my employment travel expenses in an audit — how do I challenge this?

Employment travel expenses are deductible only when specific conditions are met under the Income Tax Act. You must have a T2200 signed by your employer confirming that you were required to travel in the course of employment and to bear your own travel costs. Without a T2200, the claim is indefensible.

Even with a T2200, the expenses must be reasonable and directly related to your employment duties. CRA auditors will look for receipts, mileage logs, hotel invoices, and conference or client meeting records that tie each expense to an employment purpose. Meals claimed as travel expenses are generally 50% deductible. Personal travel tacked on to business travel is not deductible.

If CRA denied your claim, determine the specific reason for the denial. If your T2200 is ambiguous or your records are incomplete, gather whatever additional documentation you can and assess whether a well-documented objection could succeed. If the T2200 does not clearly authorize travel, request an amended or supplementary letter from your employer. If the denial is because CRA believes the travel was personal, provide evidence of the business events attended. File a Notice of Objection within 90 days of the reassessment and include all supporting documentation.