Gerald, one of the Sales Directors at Richter was required to travel to Germany on January 1, 2020 for a critical sales meeting. This was before COVID19 travel restrictions were implemented by various government authorities. His employment agreement requires him to pay for accommodation and other travel expenses directly. He receives a monthly allowance of $2,000 and it normally covers his travel expenses. When COVID19 struck, Gerald had to stay and work from a hotel in Germany until travel restrictions were lifted. Richter increased Geralds monthly allowance to $5,000 to cover his living expenses while in Germany. As he is frugal, Gerald was able to stay at his friends house for a nominal fee and bought and cooked his own food. His actual monthly living expense while in Germany, including rent and food was $3,000. Gerald is happy that he can pocket the difference and is confident he will not have to pay Canadian income tax on the additional $2,000 while he is working from Germany. Gerald is unsure how his stay in Germany will impact his Canadian residency status as he did not return to Canada until May 31, 2020.