Don’t turn a gift into a penalty

Understanding and following the CRA’s taxable benefit rules for gifts and awards can help payroll – and employees – avoid tax headaches
By Sheila Brawn
|Canadian Payroll Reporter|Last Updated: 06/11/2014

Who doesn’t like to receive a gift or an award? Unfortunately, the sweet taste of getting one from an employer can turn sour if the payroll department does not follow the Canada Revenue Agency’s (CRA’s) rules for giving gifts and awards.

If a CRA audit finds an employer did not properly assess a taxable benefit for a gift or award, the employee who received it may owe taxes and interest and the employer may face penalties and interest.