I will start with a warning ---- this thread will NOT become political. Any posts that are outside the guidelines of Canadian Poncho will be deleted or edited.
I am posting this to show what is ahead for someone like myself who gets a discount on auto parts I buy through my work. This will be the same for any of you who buy items from your work place, be it groceries, auto parts, vacuum cleaner bags, fishing tackle, whatever.......
My boss told me today that when this starts, I will be taxed on the difference between my cost and suggested retail price. I'm not a happy camper, I get my parts at work at actual cost, no profit on them for the company at all.
QUOTE-
The national revenue minister says she is not looking to target the country's retail workers, even after the Canada Revenue Agency (CRA) issued guidelines to business owners that could pave the way for new taxes on merchandise purchased with an employee discount.
The CRA said in a document posted on its website that discounts for merchandise should be treated as a taxable benefit. The tax collector said that when an employee receives a discount on merchandise as a benefit of their employment the value of the discount should be included in the employee's income at tax time.
"However, no amount is included in the employee's income if the discount is also available to the general public or to specific public groups," CRA said in its "folio," a document written in plain language and disseminated to employers to help them interpret the tax code.
The onus would largely be on the employer to keep track of how much an employee saved with discounts in a given year, as they typically file T4s (a statement of remuneration paid) with the CRA for each of their workers.
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1966 Strato Chief 2 door, 427 4 speed, 45,000 original miles
1966 Grande Parisienne, 396 1 of 23 factory air cars
so..what if you paid cash to your employer? No name...no record.
-- Edited by hawkeye5766 on Wednesday 11th of October 2017 11:42:07 PM
My boss is the type who won't do stuff like that, and I'm ok with that. It speaks volumes for his integrity.
But on the other side, I do have some ideas for ways around this that are perfectly legal and ethical.
If this comes in, I bet companies like Rock Auto will notice an increase in Canadian sales. Anyone who has a deal at work like I do currently doesn't like use Rock Auto. I don't need to because of pricing, however I do want to buy some stuff there because they are supporting Canadian Poncho.
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1966 Strato Chief 2 door, 427 4 speed, 45,000 original miles
1966 Grande Parisienne, 396 1 of 23 factory air cars
My boss just told me about this after lunch today, I guess the company's accountant was trying to give him a heads up so it wouldn't shock him when it came in. That would be great if nothing comes out of it. I personally buy a fair bit of stuff at cost for my old cars as well as daily drivers.
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1966 Strato Chief 2 door, 427 4 speed, 45,000 original miles
1966 Grande Parisienne, 396 1 of 23 factory air cars
This is nothing new! Years ago I worked for the BC Ferries, 30, and we as employees were given, depending on were you lived, passes for travel on the ship of the fleet. These are now a taxable benefit. As the prices have increased over the years so has the tax. For this reason I do not use them. I know that it seems like a great perk but at the price of a return trip to Victoria it is a lot. Cheaper to just walk on and take the bus.
For 13 years I had a company vehicle. One day they came and did a dealer audit and we all got nailed. I gave it up and bought my own vehicles, that was 1998. They never once mentioned parts discounts then. I'd never heard of such a thing until my boss mentioned it today. I'm still not believing it but as Ray posted, it's under review, thankfully.
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1966 Strato Chief 2 door, 427 4 speed, 45,000 original miles
1966 Grande Parisienne, 396 1 of 23 factory air cars
I also get a discount on parts.....Hope they rethink this
Also, since I work part time, I make a couple of bucks above minimum wage. Looks like as of Jan 1, I will be making minimum wage...thanks Wynne.....just sayin'
When I worked at the Chrysler dealer we had a points program- points for selling tires, some maintenance items etc. We could use the points to "purchase" products from an online catalog. I always chose Petro Canada gift cards. At tax time I'd get a T form from Chrysler with a value of the rewards that I had to claim. Usually it was about $1600.
I agree with the comments above and sympathize with those who might be affected. But believe me- its peanuts compared to what the Feds are doing to people like me and my wife. Self employed and small business incorporated. They want to nickel and dime you guys. They want to drain my blood and leave me to the buzzards.
For 13 years I had a company vehicle. One day they came and did a dealer audit and we all got nailed. I gave it up and bought my own vehicles, that was 1998. They never once mentioned parts discounts then. I'd never heard of such a thing until my boss mentioned it today. I'm still not believing it but as Ray posted, it's under review, thankfully.
In the 1980's they made demo's a taxable benefit for all the managers, but my "demo" was leased so I didn't get dinged.
