Administrative Policy Changes for Taxable Employment Benefits – June 11, 1009

In 2007, the Canada Revenue Agency (the “CRA”) initiated a review of taxable benefits to employees and the related administrative costs to employers. During this review, the CRA has worked with other government and external stakeholders. Based on the findings, the CRA is announcing changes to its administrative policies for taxable employment benefits in order to reduce a number of administrative difficulties and increase fairness:

·         Overtime Meals and Allowances Provided to Employees

·         Municipality or Metropolitan Area

·         Loyalty Programs

·         Employer Provided Motor Vehicles Required to be Taken Home at Night

·         Non-cash Gifts and Non-cash Awards

·         Surface Transit Passes Provided to Family Members of Transit Employees

Details of the changes can be obtained in the Income Tax Technical News No. 40 dated June 11, 1009 which can be found on the Canada Revenue Agency website at http://www.cra-arc.gc.ca/E/pub/tp/itnews-40/README.html.