Taxable benefit where employees purchase at less than cost
we consider discounts to be taxable in all the following situations:
- You make a special arrangement with an employee or a group of employees to buy merchandise at a discount
- You make an arrangement that allows an employee to buy merchandise (other than old or soiled merchandise) for less than your cost
- You make a reciprocal arrangement with one or more other employers so that employees of one employer can buy merchandise at a discount from another employer
