CRA Assessed Employment Benefit
Have you been assessed or reassessed an employment benefit like a standby or operating charge on a company vehicle?
We are seeing many files where an employer has been audited for benefits paid (allegedly) to a group of employees. These benefits usually include the use of a company vehicle (standby charge) and maintenance and operation of a vehicle. They may also include benefits from Christmas parties, gifts etc.
Typically, without any consultation with the employees the Canada Revenue Agency issues amended T4 slips and a tax bill.
These reassessments are usually not the employer’s fault. The Canada Revenue Agency believes that the employee is using the company vehicle for personal use. In most cases the Canada Revenue Agency is wrong. The standards for the standby charge changed in 2003 as a result of a Tax Court of Canada case.
We have had good success defending our clients against these reassessments.
If you or your employees have been reassessed, please call us at 403-251-5925.