Life Money
  • Facebook
    Facebook
  • Twitter
    Twitter
  • Pinterest
    Pinterest
  • +
  • Linkedin
    Linkedin
  • WhatsApp
    WhatsApp
  • Email
    Email
SHARE THIS
  • Facebook
    Facebook
  • Twitter
    Twitter
  • Pinterest
    Pinterest
  • Linkedin
    Linkedin
  • WhatsApp
    WhatsApp
  • Email
    Email

Minimum wage workers deserve all the perks an employer can throw at them. They have to do some of the hardest, dirtiest work, deal with people at their worst (and rudest) and they get zero thanks for their service. They are the true warriors of Western society and we salute them. Now a new tax rule is looking to take away one of their only perks: the employee discount.

The Canadian Revenue Agency released a folio this week to remind Canadians of a new rule that states, ‘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.’ Basically, your employee discount has become a taxable benefit, meaning it will be considered part of your income and taxed accordingly. Up until this week, employer organizations actually thought that this new addition to the tax code was a mistake (because it seems ridiculous) but no such luck. This announcement from the CRA means that they will be enforcing the rule come 2018.

Taxes will also apply to third-party discounts you receive because of where you work. The one loophole, however, is that if ‘the discount is also available to the general public or to specific public groups’ at sometime it won’t be considered taxable. So, does that mean Ford employees are safe?

Not only does the enforcement of this rule mean that people will be getting taxed more (and once again, the government is profiting off of the non-wealthy), it may eliminate staff discounts altogether. As Retail Council of Canada vice-president Karl Littler pointed out before the Commons finance committee, employers would rather scrap their discounts than go through the ‘bureaucratic nightmare’ of having to keep track of their employees’ use of them.

It’s no secret that the Trudeau government’s tax plan and budget leave much to be desired by the average Canadian. This is just the latest new inconvenience to pop up and people are not happy about it.

Naturally, the Conservatives came out to oppose it too.

If there’s a silver lining in this, it could be that the government doesn’t seem fully committed to the new rule. At least, Littler thinks they might drop it.

‘I don’t have a sense that the government is completely committed to this,’ he said to CTV, ‘I have to think cooler heads will prevail.’ Since the first announcement, Revenue Minister Diane Lebouthillier has announced that her office will be reviewing the proposal.

Hopefully after seeing the backlash (and the edge this gives the Conservatives), the Trudeau Government will back off.

COMMENTS