Search - connection

Response Policy Statement P-184R states that the CRA will permit a registrant who is, among other things, an employer to use the prescribed factor method for claiming ITCs on company credit card expenses charged to the company credit card if all of the following conditions are satisfied: 1. the employee must have been issued the credit card at the employer's request and have made the acquisition of the property or service for consumption or use in the employer's commercial activities; 2. there must be one or more written agreements between the employer, the employee and the credit card issuer stating that the employee is solely or jointly and severally liable with the employer for payment of all charges made in connection with the company credit card issued to the employee; 3. the employer must have reimbursed the card member for property or services recorded on the credit card statement which are all or substantially all (90% or more) taxable (other than zero-rated) supplies; and 4. the documentary evidence used in the calculation of the ITC must satisfy the criteria described in paragraph 4 of Policy Statement P-184R. ... Second, we assume that one or more agreements exist between the employee, the Company and the credit card issuer stating that the employee is solely or jointly and severally liable with the Company for the payment of all charges made in connection with the credit card issued to the employee. ... There is an agreement between the Company, the employee and the credit card issuer stating that the employee is jointly and severally liable with the Company for the payment of all charges made in connection with the company credit card issued to the employee. ...