Taxable benefits are an area to which business owners should pay close attention. Many benefits which, on the surface, may not appear to be taxable actually are and it’s important to protect your business and your employees by knowing the difference. For example, a car given to an employee for business use would not be taxable. However, if that employee also uses the vehicle for personal purposes, it would then become a taxable benefit.
To help clarify the details of what is considered by CRA to be a taxable benefit and what is not, the agency has prepared an Employer’s Guide to Taxable Benefits and Allowances.