On July 7, 2016, Income Tax Folio S2-F3-C2, Benefits and Allowances Received from Employment, was introduced to replace and cancel Interpretation Bulletin IT-470R(Consolidated), Employees’ Fringe Benefits, along with a portion of a few other publications. New information in the Folio include, among others:

  • a discussion of tax treatment of benefits by employee- shareholders and the capacity in which the benefit is conferred;
  • description of “benefits of any kind whatever”;
  • ways a benefit may be conferred and the timing of income inclusion;
  • the meaning of the term “primary beneficiary”;
  • a discussion of 3rd party benefits and discounts;
  • an overview of the exclusion from income for allowances provided to employees at special work sites or remote work locations; and
  • a discussion of “reasonable allowances”.

For further information see VTN Monthly Tax Update Seminar, Issue No. 421