The absence of receipts for expenses covered by the employer can lead to a taxable benefit
The CRA determined that the monthly payments made to cover the costs of employed bus drivers were taxable since no receipts were required.
The CRA determined that the fixed monthly payments made to school bus drivers to cover the following personal costs:
■ cellular phone usage,
■ bus washing expenses (such as at a car wash),
■ electricity consumption (which is for plugging in the employer's school bus at the employee's residence to ensure that the bus would start in the morning).
Should be considered part of the employees' income under s. 6(1)(b) because the employees were not required to submit receipts.
It is important to have and submit receipts to employer because the lack of receipts could result in a taxable benefit, as demonstrated by the CRA's findings regarding fixed monthly payments made to school bus drivers.
Disclaimer:
“Please note that the information provided in this article is of a general nature and may not be accurate for your specific situation. The information is current as of the date of posting and is not intended to provide legal advice. It's always recommended that you consult with a professional accountant and lawyer for personalized guidance and advice."
