Event tickets

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https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/benefits-allowances/provided/tickets.html

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Events tickets

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Content has been updated for clarity, completeness, and plain language. No changes were made to the current CRA administrative policy.

You may provide tickets to entertainment and sporting events to your employees such as tickets to sports games, concerts and performing arts events.

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Determine if the benefit is taxable

Generally, event tickets you provide, pay or reimburse to your employees are taxable. Depending on your situation, the benefit may not be taxable.

Non-taxable situation

If you provide your employee with an event ticket and it is provided for business use, the benefit is not taxable if all of the following apply:

  • Employee is attending the event to carry out their employment duties
  • You kept all required records
  • You can clearly demonstrate that you are the primary beneficiary of the benefit

Examples of employment duties

Employment duties may include when the employee actively engages in a business meeting, negotiation, discussion, or other bona fide business transaction during the event on your behalf.

Other examples include:

  • Promoting and marketing to suppliers or other business contacts
  • Supervising and managing at an event
  • Performing other specific duties required during the event (for example: providing on-call, on-site emergency medical services, conducting in-venue marketing promotions, training on a product)

Records you must keep

The records you keep should include all of the following information:

  • Name of employee receiving the tickets
  • Details of the personal or business use
  • Number of tickets provided to the employee
  • Value of each ticket provided to the employee


Taxable situation

If the benefit does not meet one of the conditions above, the benefit is taxable. Generally, event tickets you provide, pay or reimburse to your employees for their personal use are taxable.

If the event ticket was provided for personal use as a gift or an award, continue to: Gifts, awards, and long-service awards

Calculate the value of the benefit

If the benefit is taxable, the value of the benefit is equal to:

  • Fair market value of the benefit received or enjoyed
  • minus Any amounts your employee reimbursed you
  • equals Value of the benefit to be included on the T4 slip

Withhold payroll deductions and remit GST/HST

If the benefit is taxable, you must withhold the following deductions:

  • Withhold: Option 1

    • Income tax
    • CPP
    • EI (do not withhold)

  • Remit: Option 2

    • GST/HST in certain situations

The amounts must be included in the pay period they were received or enjoyed.


Learn how to calculate deductions and the GST/HST to remit on benefits: How to calculate – Calculate payroll deductions and contributions.

Report the benefit on a slip

If the benefit is taxable, you must report the following amounts on the T4 slip:

  • Box 14 – Employment Income
  • Box 26 – CPP/QPP pensionable earnings
  • Code 40 – Other Information

Learn how to report the benefit on a slip: Fill out the slips and summaries – File information returns (slips and summaries).

References

Legislation

ITA: 6
Amounts to be included as income from office or employment
ITA: 6(1)(a)
Value of any benefit is to be included as income from office or employment
ITA: 6(1)(b)
Allowance for any purpose
CPP: 12(1)
Amount of contributory salary and wages
ETA: 173
Taxable benefit is considered a supply for GST/HST purposes
IECPR: 2(1)
Amount of insurable earnings
IECPR: 2(3)
Earnings from insurable employment
IECPR: 2(3)(a.1)
Earnings from insurable employment – amount excluded as income under 6(1)(a) or (b), 6(6) or (16) of the ITA

Examples of employment duties


Employment duties may include when the employee actively engages in a business meeting, negotiation, discussion, or other bona fide business transaction during the event on your behalf.

Other examples include:

  • Promoting and marketing to suppliers or other business contacts
  • Supervising and managing at an event
  • Performing other specific duties required during the event (for example: providing on-call, on-site emergency medical services, conducting in-venue marketing promotions, training on a product)


Records you must keep


The records you keep should include all of the following information:

  • Name of employee receiving the tickets
  • Details of the personal or business use
  • Number of tickets provided to the employee
  • Value of each ticket provided to the employee


What is the CRA's administrative policy for the purpose of taxable benefits



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Date modified:
2024-04-10