Origins of Truckers Subsistence Allowance

I have conducted hundreds of interviews and dozens of seminars. Many times in the process I have been confronted with the concept of “origins of subsistence allowance”. Many people ask a very good question “If it is such a great opportunity how come so few truckers are doing it?”.
First of all I’d like to say that CRA does not publish “tax tips” big or small. They generally only release information that reflects their internal policies, such as compliance, restrictions and general assistance on preparation (some exceptions apply).
The accounting industry then, is responsible for providing individual tax service for citizens. Companies like H&R Block, Liberty tax as well as a host of other franchises compete with T1 preparers coast to coast, most claiming the best value.
For the more complex returns, accounting firms also should be providing services on navigating the many options and opportunities. Professional preparers are responsible for finding and presenting the best tax opportunities available. With respect, the Tsunami like changes in the accounting industry has left professionals swamped with new regulations, restrictions and obstructions to service. An industry that “doesn’t like change” is overwhelmed with turmoil and backlog. However, that’s their excuse today but it provides no defense prior to approximately 2000-2002. Simply put, accountants (myself included) up until several years ago simply never thought outside the box.
The second thing I’d like to confirm is that I’m not working as a historian. Even in my book I resisted a detailed exposure of certain facts. So as to resist pointing the blame, I still prefer to restrict some information to the general public. I believe blame (sometimes) leads to retaliation and revenge. In history, revenge is the antithesis of justice and equality. In my opinion, it would be counter productive. However, the information I now share should not foster revenge but co-operation and collaboration.
Back in 1991 a trucking company was working for and with a pipeline company with varied contracts and results. They had a high GST return then low and visa versa. The fluctuation flagged an audit. The auditor (apparently a very helpful one) scoured through the books and found out why and was satisfied. The audit produced no re-assessments, all things were done well. The jolly (and apparently robust) auditor asked why the company wasn’t claiming the GST on the flat rate meal allowance and accommodation allowance provided the pipeline workers (ranging from $95 to $125 dollars per day). He conveniently calculated the amount to $143,000 (expensed at about $2 million). To state that the auditor was helpful is a six figure understatement.
One of the consultants who were working for the company at the time (Lucien Bleau) had a long chat with the auditor. In the end, the auditor informed Mr. Bleau that there is nothing stopping the trucking industry from providing the allowance to drivers, and collecting back the ITC (GST Memoranda 400-3-11 and 400-3-3). The resultant opportunity was exposed.
According to my limited research and knowledge this is the roots of the opportunity. However, tracking the initial exposure to present is like finding the tail end to a bowl of spaghetti. There appears to be a lot of start and stops. If I start to mention names and companies I run the risk of including or excluding a whole lot of people. Since I’m not interested in hurting anyone’s feelings I’ll keep it to one name… Lucien Bleau, the man many operators owe a cup of coffee or more. He was at the right place at the right time and asked the right questions. The CRA agent (who will truly remain anonymous) is owed a multi-million dollar thank you.