Chameleons in northern Canada

"For the fourth time in five years, residents of northern Canada have seen a change in the tax treatment of housing and travel costs. The latest changes announced in December 1990 by the Minister of Finance are to become effective in 1991. When will the tinkering stop?IntroductionFor man y years prior to 1987, certain travel and housing allowances received by employees in remote areas were generally considered by Revenue Canada to be tax-free, even though some observers suspected that such generous treatment was contrary to the provisions of the tax legislation. In the mid-eighties, Revenue Canada decided to reconsider the tax treatment of the mining industry's long standing practice of providing housing and travel assistance to these employees. The tax- free treatment was continued by virtue of annual remission orders, but only pending the enactment of legislation which would tackle the issue head-on and layout the rules in black and white to be seen by all. The sequence of events since then may be chronicled as follows:February 26, 1986-Finance Minister Wilson's budget present s the framework for the future tax treatment of travel and housing benefits provided to residents in remote regions of Canada.December 22, 1986-The Minister of Finance announces detailed rules to fill in the earlier announced framework.January 1, 1987-The new tax rules come into effect.April 29, 1988-The Minister of Finance announces the establishment of a Task Force to examine the existing criteria for determining the eligibility of residents of northern and isolated areas for tax benefits.October 27, 1989-The Task Force presents its report.December 7, 1990-Finance Minister Wilson announces a new system of tax benefits for residents of Canada's northern and isolatedregions.January 1, 1991-The new rules become effective."