Acco340Lecture 2-3 - Employment Income

Note cras recent view tech news 40 is that if points

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                    Note:  CRA’s recent view (Tech News #40-June 11, 2009) is that if points earned in a Loyalty Program (such                     as frequent flyer points) are used for personal purposes such as travel  is not a taxable benefit if: the points are :                    i) not converted to cash; ii) not an alternative form of remuneration; iii) not used for tax avoidance purposes; iv) not                    controlled by the employer ( eg, earned by using employer’s credit card) and; v) earned by an employee using his                    credit card to pay the expenses of others and subsequently being reimbursed.   -tuition fees paid for, or reimbursed by an employer , are taxable benefits under certain conditions :   Note:  Inconsistent past assessment application by the CRA resulted in issuing 1998 guidelines: i) Specific Employer Related Training - not an employee taxable benefit ii) General Employment Related Training - not an employee taxable benefit iii) Personal Interest Training - employee taxable benefit NOTE: Generally, tuition fees paid by an employee that are not reimbursed by the employer, are eligible for a tax credit.  Tuition fees paid directly by the employer or paid by the employee and then reimbursed to the employee, cannot be  claimed by the employee as amounts eligible for a tax credit (ie no “double dipping”)                                                                                                                                          CRA Administrative Practise position (IT-470R) is that the following fringe benefits are  not taxable : -costs of providing counselling services related to mental or physical health, re-employment, or retirement  -discounts on merchandise (within profit margins), waiving of commissions on sales of merchandise or insurance  -subsidized meals provided in employer facilities  -uniforms and special clothing -subsidized school services in remote areas -transportation to the job in employer vehicles in special circumstances -use of employer recreational facilities - membership fees if it is an advantage for the employer for the employee to belong to a social or athletic club - reimbursements to employees    of certain  moving expenses  (to be further discussed)
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-premiums under certain private health services plans  (to be further discussed) - employer’s   (not the employee’s)   required contribution s   under certain provincial hospitalization & medical care 
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