Conservative MPs and business lobby groups alongside hosts of Canadians on twitter are accusing the Liberal government of targeting low-wage earners with new rules around taxation of employee discounts.
The latest version of the Canada Revenue Agency’s tax folio advises employers that “when an employee receives a discount on merchandise because of their employment, the value of the discount is generally included in the employee’s income,” with the value of the discount assessed at “equal to the fair market value of the merchandise purchased, less the amount paid by the employee,” unless the discount is “available to the public or a segment of the public, at some point during the year.”
Before the change, which some expect to come into effect Jan. 1, employers were advised to tax employee discounts only if the employee was purchasing the merchandise below the employer’s cost.
United Conservative party leader Jason Kenny posted in anger, while others called the tax “petty”
So Justin Trudeau’s idea of helping the middle class involves taxing minimum wage workers for employer discounts: https://t.co/IHwlfhnjYI
— Jason Kenney (@jkenney) October 10, 2017
Typical retail worker is hardly a wealthy Canadian who needs to pay more tax! Most earn minimum wage! https://t.co/GksEHgMR1o
— Harold Chmara (@ChmaraHarold) October 10, 2017
This just comes across as petty
Gov’t of Canada targeting retail workers with employee discount tax https://t.co/4sk7ERaojZ
— Harris Watson (@CGWM_HWatson) October 10, 2017