Feds remove employee-discount tax and call for consolations
The Canada Revenue Agency headquarters in Ottawa is shown on November 4, 2011. (THE CANADIAN PRESS / Sean Kilpatrick)
Andy Blatchford, The Canadian Press
Published Wednesday, October 11, 2017 1:40PM EDT
The federal government appears to be doing away with a controversial tax policy interpretation that would have seen employees taxed for discounts they get at work.
Amid a growing controversy, a spokesman for the National Revenue Minister Diane Lebouthillier says the government will pull the new wording at the heart of the debate from the Canada Revenue Agency website.
John Power says the government is planning to hold an internal review on the wording change, which will be followed by a consultation on the issue with industry groups.
The decision to restore the old wording comes after strong objections from business associations that warned the change would lead to new taxes on retail workers, many of whom earn modest wages.
The industry groups also say the new wording would have created significant administrative burdens for employers, who would be required to track employee benefits.
Power says the original decision to change the wording in the document was made by the CRA without the minister's approval.