2019-0828621C6 2019 TEI Conference – Question 2

Principal Issues: Update regarding S2-F3-C2.

Position: See below.

Reasons: See below.

Author: Sigouin, Renée
Section: -

2019 TEI Conference

Question 2. Benefits and Allowances Received from Employment

Since October 2017, Income Tax Folio S2-F3-C2, Benefits and Allowances Received from Employment, has been “under review” and the CRA has directed employers to follow current practices consistent with the information available in Guide T4130, Employers’ Guide ? Taxable Benefits and Allowances. In response to TEI’s December 2018 question on this subject, the CRA indicated that it had reviewed and revised the folio’s wording with respect to employee discounts on merchandise, but that the revised folio continued to undergo additional review pursuant to internal CRA procedures. TEI invites the CRA to provide an update regarding the status of this additional review and the projected release date of the revised folio.

CRA RESPONSE

The folio is currently in the process of review and approval in accordance with CRA internal procedures. A projected release date for the updated folio cannot be provided at this time.

During the approval period, the CRA continues to administer employee discounts on merchandise in accordance with the administrative policy outlined in Guide T4130, Employers Guide – Taxable Benefits and Allowances, which is currently available on the tax pages of the Canada.ca website.

Renée Sigouin
2019-082862

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