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.
Source Deductions Division Business and General DivisionAndré Bissonnette Director
Ministerial Correspondence
Taxable Benefits
Your memorandum of May 28, 1993 addressed to the Technical Publications Division was forwarded to this Directorate for response. The ministerial enquiry which prompted your memorandum expresses concern over the issuance of XXXXXXXXXX
As you are aware, the Department's position with respect to the treatment of these types of perks or privileges for tax purposes is set out in paragraphs 33 and 43 of IT-470R. The position contained in those paragraphs reflects the Department's long-standing practice of not subjecting the value of these privileges to tax as a benefit from employment. The earliest known reference to the tax-free treatment of transportation passes for employees in the transportation industry and the use of employer-owned recreational facilities is found in the 1964 publication of Information Bulletin No. 24 "Employees' Fringe Benefits".
Please note, however, that, in order for the benefit derived by an officer or employee from the use of employer-owned recreational facilities to be considered a non-taxable benefit, employees generally must be provided access to those facilities. Where access is limited to certain officers or employees the benefit would be considered taxable in their hands.
We confirm your interpretation that the position with respect to transportation passes extends to the usage of any such passes by dependants of the employee. In addition, we would confirm that, unless the context otherwise requires, the positions outlined with respect to employee benefits described in IT-470R, apply to those received by officers.
B.W. Dath DirectorBusiness and General DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch
c.c. Technical Publications Division John Oulton, Acting Director
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© Her Majesty the Queen in Right of Canada, 1993
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© Sa Majesté la Reine du Chef du Canada, 1993
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