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 reimbursements or allowances for snow clearing costs at a school bus driver's residence when the school bus must be taken home overnight are taxable employment income.
Position: Any benefit to employees is only ancillary when they pay a third party for clearing snow on the days that they start their route from home. Where employees do not pay a third party and "self receipt", the amount constitutes a taxable benefit.
Reasons: Where an employee proceeds from home to a point of call other than a regular place of employment, employer provided assistance for actual expenses incurred would not give rise to a taxable benefit. Employees who "self receipt" have not incurred any expense in respect of the snow removal and the payments are in effect an extra form of remuneration.
July 7, 2011
House of Commons
Ottawa ON K1A 0A6
Dear XXXXXXXXXX :
I am writing in reply to your correspondence addressed to my predecessor, the Honourable Keith Ashfield, and written on behalf of your constituent, XXXXXXXXXX, concerning employers paying for snow removal from the residences of school bus drivers. I apologize for the delay in responding.
Generally, when an employee receives a benefit because of his or her employment, the employee must add or include the value of the benefit in his or her income. However, if an amount is paid for something that is primarily for the advantage of the employer, the Canada Revenue Agency (CRA) accepts that there is no taxable benefit to the employee even though there may be an associated advantage or benefit for the employee. Although getting to work is a personal responsibility and employer-provided assistance to do so would generally give rise to a taxable benefit, when an employee travels from home to a work-related point of call other than his or her regular place of employment, such travel is not considered personal and would not give rise to a taxable benefit.
CRA officials have had the chance to reconsider this case. They are now of the view that school bus drivers are receiving only an associated benefit when their employers reimburse them for a payment to a third party for clearing snow from their driveways on the days the drivers start their route from home. However, if the employer pays a school bus driver instead of a third party to clear the snow, the amount is considered a taxable benefit. In this situation, there is no expense for the employee and the payment is in effect an extra form of remuneration.
I trust that the information I have provided will help you respond to XXXXXXXXXX.
Gail Shea, P.C., M.P.
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, 2011
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, 2011