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.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues:
the use of subleasing arrangement to avoid the application of the standby charge rules
Position:
the article referred to paraphrases our response at the 1992 TEI conference
Reasons:
The standby charge rules will not apply if the employee is the bona fide lessee of the lease so that the employer is not in the position of having provided the employee with an automobile
A. Humenuk
XXXXXXXXXX 960624
Attention: XXXXXXXXXX
March 28, 1996
Dear Sirs:
Re: Standby Charge
We are replying to your letter of February 8, 1996 concerning the article on automobiles in the September 1992 issue of "Taxation of Executive Compensation and Retirement".
The article in question examines our response to questions raised at the 1992 Tax Executive Institute Conference on the same topic. The comments in the article are not substantially different from the response given at that conference.
We trust our comments will be of assistance to you.
Yours truly,
P.D. Fuoco
for Director
Business and General Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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