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.
XXXXXXXXXX
Dear XXXXXXXXXX:
The Honourable Herb Dhaliwal, Minister of National Revenue, has asked me to respond to your letter addressed to the Honourable David Collenette, Minister of Transport, concerning a request to make employer-provided transit passes income tax exempt. Mr. Collenette forwarded a copy of your letter to Mr. Dhaliwal on May 24, 1998.
The Income Tax Act requires the value of all benefits from employment to be included in an employee’s income. This would include the benefit derived from the employer purchase, provision or subsidization of employee transit passes. A transit pass given to an employee is usually for travel between the employee’s home and work. Such travel is personal in nature and, therefore, if the employer chooses to assume the costs, the benefit would be taxed.
An amendment to the Act would be necessary to make employer-provided or employer-subsidized transit passes a tax exempt employment benefit. Such amendments are the responsibility of the Honourable Paul Martin, Minister of Finance. I note that your letter was forwarded to him for consideration.
I hope these comments are of assistance to you.
Yours sincerely,
Bill McCloskey
Assistant Deputy Minister
Policy and Legislation Branch
Nancy Graham
957-2136
July 2, 1998
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