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.
TO Head Office - Appeals Branch R. A. D'Avignon Assistant Deputy Minister
FROM J.A. Szeszycki 957-2130
SUBJECT: Parking Benefits
We are responding to a memorandum from your Branch dated February 7, 1989 requesting us to review the Department's existing policy on the treatment of employer provided parking benefits.
As was stated in your memorandum, the Department's current practice is to tax such benefits only if the amounts are quantifiable. The benefit is easily quantifiable if the employer negotiates a specific or separate lease in respect of parking facilities for his employees but not so if the parking facilities are inextricably linked with, and therefore considered an integral part of the original purchase or lease of the business premises.
Since this policy has been in effect concern has been expressed regarding the inequity apparent in such a policy where the assessment of parking benefits in respect of two taxpayers who otherwise work under the exact same circumstances varies only because of the manner in which the employer had acquired the parking facility.
From a technical standpoint, we have indicated previously and reiterate here that, in our view, where an employer provides parking facilities to his employees at a cost to the employee that is less than the market value a benefit is conferred on the employee that is taxable under paragraph 6(1)(a) of the Act as a benefit received by virtue of his employment.
At the same time we recognize the administrative difficulty in determining the amount of the benefit in many instances. It is clear from the numbers of objections now being dealt with that the issue of a consistent and equitable assessment of the benefit should be addressed. We would recommend, therefore, and would be willing to participate in, discussions between affected Branches in an effort to resolve this issue.
Original signed by Original signé par
M. A. HILTZ
M.A.G. Hiltz Acting Director General Specialty Rulings Directorate Legislative and Intergovernmental Affairs Branch
c.c. R.M. Beith, Senior Advisor, Fiscal Policy and Technical Interpretations
c.c. D.S. Brown, Director General, Collections and Accounting
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© Her Majesty the Queen in Right of Canada, 1989
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© Sa Majesté la Reine du Chef du Canada, 1989
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