Revenue minister reviews CRA guidance on taxable employee discounts

Minister of National Revenue Diane Lebouthiller holds a press conference in Ottawa on Monday, April 11, 2016. iPolitics/Matthew Usherwood

National Revenue Minister Diane Lebouthillier is reviewing a Canada Revenue Agency guidance document that says employee discounts are to be considered taxable benefits.

This new interpretation of the law could impact millions of Canadian retail employees who currently receive discounts on employer goods.

Till date companies that offered merchandise discounts to staff did not have to report them as taxable benefits as long as they were not sold below cost.On the contrary, according to the updated document, the CRA is advising employers that in certain instances they count as part of income and are considering them fair game to tax.

A source in the minister’s office said the CRA made the decision without the minister’s approval

Be the first to comment

Leave a Reply

Your email address will not be published.