In response to a query on the taxation of discounts on merchandise received by employees and the effect of Folio S2-F3-C2, CRA indicated that the Folio “explains the existing law, which requires that, with some exceptions, the value of benefits received from employment be included in income,” but then stated:
However, the CRA has a longstanding administrative policy that employee discounts on merchandise are generally not taxed. This policy is still in place and is explained in Guide T4130 … .
The CRA is reviewing and clarifying the wording in the … folio.