You are a bus driver for the Toronto Transit Co. and your employer provides you with a free transit pass that only you can use.

In this situation, the pass is not a taxable benefit because it is for your use only and your duties are directly related to the business of transit.

You works as the operator of the local ferry during the summer and receive 15 free common ferry passes that can be used by anyone, worth $10 each. You do not need them for yourself, so you give them all to your daughter.

In this situation, the passes are a taxable benefit, since they were not for your exclusive use. This would still be the case whether you use the passes yourself or give them to your daughter. The taxable benefit to be included in your income is $150 ($10 × 15 passes).

You work as a secretary in the mayor's office in Gatineau and your employer provides you with a free transit pass every month for the city bus service. The passes would normally cost you $100 per month.

In this situation, the free passes are a taxable benefit because your duties are not related to the business of transit. The taxable benefit to be included in your income is $100 per month, or $1,200 per year.

You are a mechanic for the transit authority in Halifax. You and your family are given a discounted rate on the purchase of transit passes. A pass normally costs $100 per month. You buy 4 passes every month (one for yourself, one for your wife and one for each of your 2 children), paying $40 per month for each pass.

Your discounted pass is not a taxable benefit because your are an employee of the transit company. However, the difference between the fair market value (FMV) of the passes for your family ($100 each) and the amount you actually pay ($40 each) is a taxable benefit. The taxable benefit to be included in your income is $180 per month ($60 difference between the amount you paid and the FMV of the pass for each of your 3 family members), or $2,160 per year.