A corporation ("Autoco") with an individual as its sole shareholder, director and officer owns collector automobiles for its investment purposes. The individual uses the automobiles exclusively in order to go to collector automobile shows, to perform automobile maintenance or to avoid damage to the mechanical parts of these automobiles that may occur when they do not travel a minimum number of kilometers per year. In discussing whether there is a taxable benefit, CRA stated:
Where an automobile, collector or otherwise, is made available to an individual in the capacity of employee and the employee uses it in part for personal purposes, a taxable benefit under paragraph 6(1)(e), in the form of a reasonable standby charge, must generally be included in the employee’s income. In addition, if an amount is paid or payable in respect of the operation of the automobile related to the individual’s personal use, the individual must include a taxable benefit in that individual capacity under paragraph 6(1)(k). …
Where a person is both a shareholder and an employee of a corporation and receives a benefit from that corporation, the Canada Revenue Agency generally considers that there is a presumption that the person benefited from that benefit as a shareholder where that person exercises significant influence over the conduct of the affairs of the corporation. However, where a similar benefit is offered by the corporation to all of its employees, including those who are also shareholders, the latter are usually considered to have received a benefit by reason of their employment.