Would the payment of premiums by an employer to an employee assistance program (providing support for issues such as stress, work difficulties, depression, marital problems, chemical dependencies, legal problems, diabetes and obesity) be a taxable benefit. After describing the exception for private health services plans, CRA referred to the exception in s. 6(1)(a)(iv) and stated (TI translation):
“[C]ounselling services” in subparagraph 6(1)(a)(iv)…are consulting or advisory services. The exception in subparagraph 6(1)(a)(iv) does not include a service that entails more than simply advice, or is preventive or curative treatment (as to which it would be necessary to examine any existing private health insurance plan and determine if these treatments occur under the plan). …
[T]he services of the employee assistance program that are counseling or advice respecting areas other than those specified in clauses (A) and (B) of subparagraph 6(1)(a)(iv), would not come within the exception provided by paragraph 6(1)(a)(iv). If these services were not principally for the main benefit of the employer and they were not provided under a private health services plan, such services would constitute a taxable benefit to the employee. Services provided in connection with difficulties at work could be an example of services principally for the benefit of the employer… .
The amount of any taxable benefit resulting from an employee assistance program which should be included in computing the income from an office or employment of the employee would be equal to the fair market value of the service, being the amount that an employee would have to pay for this service if the employee assistance program did not exist.