Is there a taxable benefit?
Disclaimer
We do not guarantee the accuracy of this copy of the CRA website.
Scraped Page Content
Is there a taxable benefit?
Answer
Taxable benefit calculation
| Item | Column A – FMV of the Gift or Award | Column B – FMV of the Long Service Award | Column C – FMV when item falls outside our gifts and awards policy |
|---|---|---|---|
Step 1: Calculate the total FMV of the gifts and awards.
The total FMV of the gifts and awards is the sum of all the items in column A minus $500. If the result is less than $0, the total FMV of the gifts and awards will be $0.
Step 2: Calculate the total FMV of the long service award.
The total FMV of the long service award is the sum of all the items in column B minus $500. If the result
is less than $0, the total FMV of the long service award will be $0.
Step 3: Calculate the total FMV of items that fall outside the gifts and awards policy.
The total FMV of items that all outside the gifts and awards policy is the sum of all the items listed in column C.
Step 4: Calculate total taxable benefit.
Add the result of steps 1, 2, and 3. The total taxable benefit is the sum of these three steps. You must include this total taxable benefit in the employee's income. Use code 40 to report the taxable benefit on the T4 slip in the other information area.
Return to Rules for gifts and awards
- Date modified:
- 2016-12-08