Employees who are required to work more than a specified number of hours before or after their shift are paid a meal allowance. Is it a taxable benefit? The Directorate stated:
In general … there is no taxable benefit [where]:
- the value of the meal or meal allowance is reasonable: in general, an amount up to $17 is considered reasonable;
- The employee works two or more hours of overtime right before or right after their scheduled hours of work.
- The overtime is not frequent and is occasional in nature. In general, less than three times a week will be considered infrequent or occasional. In addition, this condition may be satisfied where a meal or allowance is provided at least three times a week on an occasional basis to meet ad hoc workload requirements such as major repairs or periodic financial reporting.
… [A]n allowance that is higher [than $17] may still be reasonable if the cost of meals in a particular location is higher or if there are certain circumstances that justify a higher amount.