Trudeau’s “Let me be blunt: we are not going to tax anyone’s employee discounts.”

It took Prime Minister Justin Trudeau a few days to make a statement on the CRA employee discount proposal.

In a document that was posted on their website, the Canada Revenue Agency (CRA) said that discounts available to retail employees on the purchase of merchandise should be considered taxable benefits.

Even after the new guidelines issued by the CRA, which could eventually lead to taxes being implemented on employee discounts, the Canadian revenue minister stands her ground saying she isn’t specifically targeting the retail workers in the country.

According to these guidelines, the employers are urged to include the value of these discounts (employment benefit) in the total income of the employee at the time of filing taxes.

“However, no amount is included in the employee’s income if the discount is also available to the general public or to specific public groups,” – stated the CRA folio.

The onus of monitoring the amount of money an employee saves from the employee discounts they availed in a year lies with the employers. This is mainly because the T4s – statement of remuneration paid – is filed by the employers on behalf of their employees.

Marco Mendicino – a Liberal MP – said the entire process is aimed at “clarifying” the law for the lay man.

“If you’ve got an employee discount that is not available to the public at any point in time, then it will be categorised as a taxable benefit,” – he said.

On the other hand, the Retail Council of Canada is not in favour of the proposed stipulation, calling it a “potentially horrendous burden” on both the employees and the employers.

Previously, employee discounts on merchandise were taxable only when the price paid by employees was less than the product’s actual cost bore by the employer.

The CRA needs to back off to avoid incredible backlash.

Recommended For You

Meagan Kozlovs

About the Author: Meagan Kozlovs

Meagan Kozlovs is a reporter for Debate Report. She’s worked and interned at Global News Toronto  and CHECX. Megan is based in Toronto and covers issues affecting her city. In addition to her severe milk shake addiction, she’s a Netflix enthusiast, a red wine drinker, and a voracious reader.

2 Comments

  1. Do you believe this dictator Trudeau? NOT ONE IOTA OF HIM SPEAKS FOR YOU ME AND CANADA.
    How long can reporters keep this fairy tale of the liberals going is beyond me. They don’t seem to get it that at any given moment they will lose their jobs. Advertisers have no intentions of paying higher taxes to keep the media industries going , they will pull out- stop given money to bunch of useless reporters who keep broadcasting the same fake news 24/7, everyday when only one reporter is needed.

    Everyday is TRUMP TRUMP TRUMP. Nothing of Justin thousands of dollars paying people to pose.

  2. Make no mistake, the CRA does not just randomly make tax changes without the signoff or direction from above. This was either intended to re-direct people’s focus from the tax changes coming to the Private Corporations or there was a genuine intention to slide this in and now that it’s been caught, will lay on the back-burner until it finds its way back into legislation should the Liberals get re-elected.

Leave a Reply

Your email address will not be published. Required fields are marked *