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 CCRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ADRC.
Principal Issues: Whether the use of a parking space by other employees while the employee for which the spot is held is out of town would affect the determination of the parking benefit
Position: Determination of benefit would not be affected.
Reasons: The benefit arises from the parking space being held for the employee's use notwithstanding that he or she may not be available to use the spot from time to time.
XXXXXXXXXX 2003-000658
Wayne Antle, CGA
March 25, 2003
Dear XXXXXXXXXX:
Re: Taxable Benefit-Employer-Provided Parking
This is further to your letter received on March 5, 2003, following up on our correspondence to you dated February 26, 2003 (File No. 2003-000143), concerning the calculation of a taxable employment benefit with respect to an employer-provided parking space
In our earlier letter, we stated that where an employer continues to pay for, or otherwise holds a parking space for an employee's use, it is our view that the taxable employment benefit should not be reduced to account for an employee being out of town and therefore, unable to use the parking spot. You have asked us whether our position would be affected where other employees randomly used the parking spot while the employee is out of town.
In our view, the fact that other employees may use the parking spot while the employee for which the space is held is out of town and, therefore, unable to use the spot, will not affect the value of the parking benefit. The benefit arises from the parking space being held for the employee's use, notwithstanding that the employee may be unavailable to use the parking space from time to time.
We trust that our comments will be of assistance.
Yours truly
John Oulton, CA
for Director
Business and Partnerships Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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