21 March 2018 Ministerial Correspondence 2017-0729161M4 - Taxability of employee discounts -- summary under Paragraph 6(1)(a)

As part of its response to correspondence about media reports on the taxation of discounts on merchandise received by employees, CRA stated:

The media reports also led to confusion about the taxation of subsidized meals for employees. The CRA does not consider these meals a taxable benefit if the employee pays a reasonable charge. A reasonable charge is one that covers the cost of the food, its preparation, and service.

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