CRA Changes Policy on Taxable Gifts and Awards Given to Employees

JTM Business Solutions CRA Table Gifts Policy Change

The Canadian Revenue Agency (CRA) has recently updated their policy on which gifts and awards given from employers to employees will be eligible for taxation.

Cash or near-cash gifts or awards (most gift cards, prepaid credit cards, and digital currency such as bitcoin) are taxable.

Non-cash gifts or awards are taxable if: they are related to the performance of the employee, they are provided to shareholders or their family members, they are given through prize draws, or they are benefits from loyalty programs.

Non-cash gifts or awards are not taxable if: the value of all non-cash gifts given to an employee over a year period is equal to or less than $500, if the gift was for a special occasion, if the award was for an employee’s overall contribution to the workplace or if the gift or award was unrelated to the employee’s proficiency in their job.

To read more into the specifics of these new changes, click here – https://www.blg.com/en/insights/2022/11/cra-clarifies-when-gifts-or-awards-given-to-employees-are-taxable

About the author

Johaine is a Chartered Professional Accountant (CPA) with over 15 years of accounting experience. Johaine has a strong background in bookkeeping services, internal control systems & procedures and risk advisory services. Her skills and experiences garnered over the years has served her well in her more recent roles as Controller and CFO. Johaine is also an active Board member, Executive Committee member and Finance/Audit Committee member of the Better Business Bureau.

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