Photographer: Matthew Henry
“The national revenue minister says she is not looking to target the country’s retail workers, even after the Canada Revenue Agency (CRA) issued guidelines to business owners that could pave the way for new taxes on merchandise purchased with an employee discount,” wrote John Paul Tasker and Karina Roman for CBC News on October 10, 2017.
Tasker and Roman continued, “The CRA said in a document posted on its website that discounts for merchandise should be treated as a taxable benefit. The tax collector said that when an employee receives a discount on merchandise — as a benefit of their employment — the value of the discount should be included in the employee’s income at tax time.
“However, no amount is included in the employee’s income if the discount is also available to the general public or to specific public groups,” CRA said in its “folio,” a document written in plain language and disseminated to employers to help them interpret the tax code.
The onus would largely be on the employer to keep track of how much an employee saved with discounts in a given year, as they typically file T4s (a statement of remuneration paid) with the CRA for each of their workers.”
Read the full article here.
Subscribe to: Post Comments (RSS2)