Canada Revenue Agency Changes Policy for Taxable Employment Benefits

In June of 2009, the Canada Revenue Agency released Income Tax Technical News No. 40, which sets out their policy changes for taxable employment benefits. These policy changes relate to:

• Overtime meals and allowances;
• Travel allowances within a “municipality” or “metropolitan area”;
• Loyalty program points collected by employees while travelling for employment;
• Motor vehicles provided by employers;
• Non-cash gifts and awards; and
• Transit passes provided to family members of transit employees.

The full text of Income Tax Technical News No. 40 can be viewed online at: http://www.cra-arc.gc.ca/E/pub/tp/itnews-40/itnews40-e.pdf.

It is important to note that the Canada Revenue Agency’s policies are administrative only, are not binding on the Canada Revenue Agency and can be changed at any time.

For further information on this topic, see BDO Dunwoody LLP’s recent article at: http://www.bdo.ca/library/publications/tax/taxalerts/cra-new-employee-benefit-rules.cfm.