Irene is working in the Internal Audit department at Walmart Canada for a salary of $80,000 and a bonus of $2,500. She lives in Toronto, Ontario. As part of her employment duties she must travel to various store locations across the country to complete her audit engagements. She travels across Canada more than 150 days of the year. Sometimes she travels out of province and must stay in various hotels for several days. The company provided her a travel allowance of $20,000 for 2022, which she can use to cover the cost of airfare, hotel, meals, and transportation (not including vehicle costs). Considering her actual travel expenses, this allowance would not be considered reasonable.

When she is auditing a store location closer to home, she uses her personal vehicle for travel. The company has provided Irene with a specific allowance of $10,000 for 2022, for vehicle expenses. This is a general allowance which is not based on the number of kilometers driven from the corporate office to the store location.

Irene has accumulated her list of expenses (supported by receipts, etc.) for 2022. Her employer has signed a Form T2200 certifying her employment requirements above and that no reimbursements were paid by the company for any of the expenses incurred.

Expenses Amount Annual professional fees to CPA, required to keep her role as the internal auditor $1,200 Airfare $8,000 Hotel $7,000 Meals when away at least 12 hours $6,000 Public transportation when not able to use her own vehicle $10,000 Gas for Irenes vehicle $6,500 Insurance on Irenes vehicle $1,500 Original cost of Irenes vehicle $40,000 Personal laptop $1,100

Irene purchased a new vehicle in January of 2022 for $40,000 (ignore HST). She took a separate loan for some portion of the vehicle purchase and is currently paying $250 per month in interest to the lender. During the year, 2022, Irene drove her vehicle a total of 24,000 kilometers, of which 9,000 was considered employment purposes (i.e. from corporate office to store locations).

Required: Determine Irenes employment income for the 2022 taxation year. Ignore all HST. Use the following sections to support what expenses Irene is eligible to take: 8(1) h Travel Expenses; 8(1) h.1 Motor vehicle travel expenses; 8(1)I Dues and other expenses of performing duties; and 8(1)j Motor vehicle and aircraft costs.

This means you should organize your expenses using the categories noted. If an expense is not eligible to be deducted, ensure this is noted and explained.