Please note that these publications may not be up-to-date as taxation matters are subject to frequent changes.
Volume 1, Number 2
The information in Tax Perspectives is prepared for general interest only. Every effort has been made to ensure that the contents are accurate. However, professional advice should always be obtained before acting and TSG member firms cannot assume any liability for persons who act on the basis of information contained herein without professional advice.
A Christmas Gift From CCRA
By Michael Cadesky, FCA, TEP
Cadesky and Associates LLP (Toronto)
A new and much more liberal policy will apply to employee gifts starting in 2001.
Previously, an employee could receive one tax-free gift of under $100 per year, as long as the employer did not deduct it. Now, up to two gifts may be received tax-free annually, with a total value of up to $500, and the employer may take a tax deduction. The gifts must not be in cash (or near-cash such as gift certificates or gold nuggets).
A similar policy will apply to employee merit awards. Thus, in combination, an employee could receive up to $1,000 in goods tax-free annually.
We caution that we have not seen a written version of this policy. With luck, the warm reception this announcement received will not cause CCRA to rethink its position.