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.
Re: GST on Taxable Employee Benefits
This is in reply to your memorandum of May 10, 1991 to which you attached a copy of two pages found in the 1991 edition of "Preparing Your Income Tax Returns" by Arthur Andersen & Co. that make reference to the benefit equivalent to the GST related to taxable employment benefits under paragraphs 6(1)(a) and 6(1)(e) of the Income Tax Act.
Bill C-62 (given Royal Assent on December 17, 1990) which legislated the Goods and Services Tax contained consequential amendments to the Income Tax Act. One such amendment was the addition of paragraph 6(1)(e 1) which provides for the inclusion in an employee's income of an amount that is 7% of any amounts in excess of applicable PST that are required to be included in income under paragraphs 6(1)(a) and (e) of the Act in respect of suppliesGST taxable at seven percent.
There are parallel provisions [new subsections 15(1.3) and (1.4) of the Act] in respect of shareholder benefits.
for DirectorBusiness and General DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch
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