Canada: Proposed CRA policy revision | KPMG Global
Share with your friends

Canada: CRA policy on employee discounts, fringe benefits

Canada Revenue Agency policy

The Canada Revenue Agency (CRA) policy on employee benefits (also at times referred to as fringe benefits) has caused confusion with an apparent change to its policy.


Related content

In a recent publication, the CRA stated that it generally considers all items purchased at an employee discount to be taxable benefits to an employee. The CRA's previous longstanding position was that there is generally only a taxable benefit when an employee is permitted to purchase items below the employer's cost. 

A CRA statement recently said that the CRA is not targeting retail employees but stopped short of confirming that the CRA intended to change its policy. The CRA indicated it intends to clarify its position, but did not specify when it may do so.


Read an October 2017 report prepared by the KPMG member firm in Canada

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Request for proposal