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.
Principal Issues: Whether the provision of a shirt, which bears the company logo and is required to be worn in the course of employment, by an employer to an employee is considered a taxable benefit to the employee?
Position: No
Reasons: The shirt would generally be considered a distinctive uniform (see IT-470R paragraph 29).
2007-023789
XXXXXXXXXX Shaun Harkin, CMA
(613) 957-9229
February 25, 2008
Dear XXXXXXXXXX :
Re: Technical Interpretation Request - Uniforms and Clothing Allowances
This is in reply to your email of May 28, 2007, regarding uniforms and special clothing.
Specifically, you asked whether an employee is regarded as receiving a taxable benefit where an employer provides a shirt to the employee with the employer's corporate logo on it. The shirt would be required to be worn by the employee while carrying out the duties of employment.
Written confirmation of the tax implications inherent in particular transactions is given by this Directorate only where the transactions are proposed and are the subject matter of an advance income tax ruling request submitted in the manner set out in Information Circular 70-6R5, Advance Income Tax Rulings, dated May 17, 2002. Where the particular transactions are completed, the inquiry should be addressed to the relevant Tax Services Office. However, we offer the following general comments.
Interpretation Bulletin IT-470R (Consolidated) states:
"An employee who is supplied with a distinctive uniform which is required to be worn while carrying out the duties of employment or who is provided with special clothing (including safety footwear) designed for protection from the particular hazards of the employment, is not regarded as receiving a taxable benefit."
The phrase "distinctive uniform" is not defined in the Income Tax Act. Generally, where an employer requires an employee in the course of employment to wear a shirt that bears the employer's logo, the provision of such shirt or the reimbursement of the cost of such shirt is not regarded as a taxable benefit to the employee.
We trust that these comments will be of assistance to you.
Renée Shields
for Director
Business and Partnerships Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 2008
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 2008
Email this Content