Oct 10, 2017
By Michael Kramer
The Trudeau government is insisting that employee discounts will not be taxed – despite an updated Canada Revenue Agency document that suggests they will be.
Political rivals and business lobby groups – including the Retail Council of Canada – are saying they are very concerned that new wording in a government document could lead to higher taxes on retail workers – many of whom earn low wages.
But National Revenue Minister Diane Lebouthillier insists that the government isn’t targeting retail-sector workers – despite growing worries that changes in the latest version of a CRA document – could force some people to pay tax – on discounts they receive as employees.
According to Lebouthillier’s office – the updated CRA guidance document was only intended to help employers understand their tax-reporting requirements.
But a source in her office says the decision to change the wording in the document was made by the CRA – without the minister’s approval.
The document in question for employers – known as a tax folio – states that when an employee receives a discount on merchandise because of their employment, “the value of the discount is generally included in the employee’s income.”
To learn about advertising opportunities with Zoomer Radio use the link below: