Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues: Who is required to comply with the filing requirements of Regulation 200(2)(g) in respect of a benefit within the meaning of paragraph 6(1)(a).
Position: The person making the payment or conferring the gift on the employee.
Reasons: The law - .
XXXXXXXXXX 2002-011790
March 12, 2002
Dear XXXXXXXXXX:
Re: Subsection 153(1) and Regulation 200(1) of the Income Tax Act (the "Act")
We are writing in reply to your facsimile received January 10, 2002 wherein you requested that we verify for you the person responsible for completing and filing the forms that report, for Canadian income tax purposes, the value of any benefits received in a year by an employee in respect of, in the course of, or by virtue of his/her employment.
The situation in your facsimile and from discussions with you may be briefly described as follows:
A corporation resident in Canada ("Canco") purchases a vehicle for the benefit of one of its employees ("X") such that X acquires ownership of the vehicle at the time of such purchase.
Regulation 200 requires, inter alia, that a person make an information return in prescribed form where the person makes a payment of salary, wages or other remuneration to a taxpayer or confers a benefit on a person, the value of which is required to be included in the taxpayer's income from employment. The prescribed forms for these matters include a "T4" and "T4 Summary".
Except in the case of a business that has been discontinued, Regulation 205(1) requires that the forms be filed by the end of February of the year following the calendar year in which the salary, wages or other remuneration are paid to, or the benefit referred to is received by, the employee.
In the situation described by you, we understand that the person who conferred the benefit on X was the employer, Canco, and that such benefit was conferred on X in respect of, in the course of, or by virtue of X's employment. Accordingly, it is Canco who would be obligated to complete and file the forms T4 and T4 Summary after the end of the calendar year in which X acquired ownership of the vehicle as a result of its purchase by Canco and by or before the end of February of that immediately following calendar year
While we have provided you with our opinion(s) in reply to the questions you have asked of us, such opinion(s) are not considered binding on the Canada Customs and Revenue Agency (as provided in accordance with the practice outlined in paragraph 22 of IC-70-6R4).
Yours truly,
for Director
Reorganizations and Resources Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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