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: Taxation of employee awards.
Position: General Comments Provided
Reasons: General comments provided.
Sharon Vien
Elections Canada
257 Slater Street
Ottawa, Ontario 5-982665
K1A 0M6 Karen Power, CA
October 20, 1998
Dear Ms. Vien:
Re: Taxation of Employee Awards
We are writing in reply to your correspondence of October 15, 1998 requesting our comments on whether statements contained in a document, dated November 16, 1994, concerning the taxation of employee awards, are still valid.
We have reviewed the November 16, 1994 document and suggest that the following changes be made:
b) an employee in receipt of a plaque or trophy of nominal value for which there is no market, would not be required to include an amount in income as a taxable benefit;
d) if an item is personalized with a corporate or departmental logo or engraved with the employee’s name or a message, the fair market value of the item may be negatively affected. In such cases, the amount to be included in the employee’s income may be reduced by a reasonable amount, having regard to the circumstances (the existence of a logo or name may have little, if any, impact of the fair market value of the item);
e) this statement should be removed;
f) there may be no withholdings on cash or non-cash awards up to $500, but they are still required to be reflected on T4 slips at year end;
All of the other statements reflect the Department’s position regarding the taxation of employee awards.
We trust our comments will be of assistance to you.
Roberta Albert, CA
for Director
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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