On July 7, 2016, Income Tax Folio S2-F3-C2, Benefits and Allowances Received from Employment, was introduced to replace and cancel Interpretation Bulletin IT-470R(Consolidated), Employees’ Fringe Benefits, along with a portion of a few other publications. New information in the Folio include, among others:
- a discussion of tax treatment of benefits by employee- shareholders and the capacity in which the benefit is conferred;
- description of “benefits of any kind whatever”;
- ways a benefit may be conferred and the timing of income inclusion;
- the meaning of the term “primary beneficiary”;
- a discussion of 3rd party benefits and discounts;
- an overview of the exclusion from income for allowances provided to employees at special work sites or remote work locations; and
- a discussion of “reasonable allowances”.
For further information see VTN Monthly Tax Update Seminar, Issue No. 421