Shortest distance to work independent of road type

The Supreme Tax Court has held that the shortest distance for travelling to work includes roads with toll charges as well as those closed to the vehicle of the taxpayer.

The cost of travelling to work may be offset as an employment expense at a flat rate of €0.30 for each km distance. Distance is measured by reference to the shortest available road connection unless a different, longer road is obviously more favourable from the traffic point of view. A taxpayer claimed a longer route of 27 km as the only route available to him, since the shortest route by road – 9 km – was closed to his vehicle (a moped) by virtue of a bar on all vehicles with a rated maximum speed of less than 60 km/h. Also, the shorter road passed through a tunnel subject to a toll charge.

The Supreme Tax Court has now rejected the taxpayer’s claim. The provisions were general and applicable to all taxpayers, regardless of their actual means of transport. The only exception was the provision for a longer route if this was more favourable from the traffic point of view and actually taken by the taxpayer. No exception was available to exclude toll roads or roads barred to the taxpayer’s vehicle from the definition of shortest available route. The actual route taken by the taxpayer was longer in terms of both distance and time, and was thus not ”obviously more favourable from the traffic point of view”. The fact that it was the only road available to him on his moped was not relevant in the face of the general application of the provision without regard to the actual means of transport.

Supreme Tax Court judgment VI R 20/13 of September 24, 2013 published on February 5, 2014