Finge Benefits Taxable if primary beneficiary is employee

- Financial counselling & Tax return preparation are taxable; unless for re-employment or retirement
- Gifts and reward, non-cash rewards are taxable in excess of total of $500 a year
o Items or immaterial or nominal value or not taxable (cups, t-shirts etc)
- Performance related rewards are taxable
- Non-cash anniversary reward are non-taxable if less than $500; 5 years since last anniversary gift
o Not applicable to non-arms length employees
- Frequent flyer miles not taxable unless converted to cash
- Overtime meal: non-taxable if infrequent, reasonable, and for more than 3 hours of overtime
- Allowances paid for travel within municipality may be excluded if it benefits primarily the employer

Allowances are generally taxable. Exceptions:
1) travel, personal, or living fixed by an act of parliament or paid under the inquiries act.
2) Members of the Canadian forces, servants of Canada
3) reasonable travel allowance in selling property or negotiating contracts for employer.(must be reasonable, must be only for
travelling&implied vehicle expense and must be for employer)
4) reasonable received by Minister/clergy for transportation
5) reasonable for travel away from usual work municipality received from employer (not for selling/negotiating);required to
pay for own expense; is reasonable; NOT for motor vehicle expense; away from work municipality)
6)reasonable vehicle use for employment
7) for employees child to attend an English speaking school away from home.
Fees received from virtue of title = included in income.
Employer-paid GST/HST is taxable unless reimbursed by employee.
Group insurance plan: employer contributed = not taxable; employee pays all of premium = not deductible.
Group disability benefit: employer contributed: taxable, employee pays all of premium = not taxable.
Non-group insurance: employer&employee payment of premium=taxable.
Non-group disability benefit: employer&employee payment of premium = not taxable.

Deductions: relate to earning income, reasonable, not to commit an offence.
Dues and other: professional membership, [office rent/assistant salary, supplies paid] (limited by employment contract
requirements) union membership dues. No deduction on amounts not directly attributable to the ordinary operating expense.
Workspace in home: A) >50% employment duties. B) Exclusively for regular client meetings. (No B if A is met, no A, B
must be met) Deduction limited to employment source income; carry forward available. Commission employee only: property
taxes&insurance on home deductible. Mortgage interest NOT deductible.
Tradepersons tool: deduction up to $500 for eligible tools. RPPs: total annual dollar limit for money purchase RPPs: 2014:
24930;2013:24270. Max defined benefit: 2% of employees income x # years of service. Employee contributions are deductible.
Legal: deductible if incurred to collect a right to remuneration owed to the employee by (former) employer.
Meals: limited to 50% of reasonable or amount paid. While traveling for employer more than 12 hours away from municipality
of work = deductible. Exceptions to 50%: up to 6 events for all employees; primary purpose: charity fundraisers.
Limitations: interest expense for passenger vehicle:$300. Leasing cost of passenger vehicle:$800. Capital cost of auto: $30000.
Motor vehicle cost: where auto expense are deducted, interest paid on funds borrowed to buy and CCA on motor vehicles are
deductible prorated for use in employment.