Government tells CRA to back off plan to tax employee discounts

National Revenue Minister Diane Lebouthillier says she is ‘deeply disappointed’ the Canada Revenue Agency issued new directives on how employee discounts on merchandise should be taxed.

She is blaming bureaucrats at the CRA for forming a plan to tax employee discounts, reversing a new interpretation of the tax code she says she never approved in the first place while instructing the agency to pull the plans from its website.

After the statement released from minister’s office, the folio was pulled from the CRA’s website.

John Power, a spokesperson for Lebouthillier said the minister has instructed the agency to review its interpretation of the tax code and consult with stakeholders in the industry.

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