Tax benefit
There are three criteria
to consider the validity of a tax benefit: the benefit is to improve
the economic situation of the person, this improvement must come from
employment and, ultimately, the employee must be the primary
beneficiary.
Benefits aree taxable when an employee uses his own vehicle or that of the employer. When the employer pays an allowance to the employee that pay more than the cost of the vehicle fees for business purposes, this amount is considered as a taxable benefits.
A soft loan from an employer is a taxable benefit when it is below the prescribed rate. The amount of the tax benefit is calculated as follow: (prescribed rate - rate obtained * loan amount * # of days that the taxpayer has enjoyed the money / 365). Some features apply to loans for discounted home purchase or relocation.
There is taxable benefit on share-option purchased when the option is exercised and there is capital gain when the operation is disposed. When the company is Canadian or when the action is listed on an exchange, there is no tax benefit upon exercise of the option, but only at the disposition, unless the share price upon exercise is greater than or equal to the share price at grant.
Benefits aree taxable when an employee uses his own vehicle or that of the employer. When the employer pays an allowance to the employee that pay more than the cost of the vehicle fees for business purposes, this amount is considered as a taxable benefits.
A soft loan from an employer is a taxable benefit when it is below the prescribed rate. The amount of the tax benefit is calculated as follow: (prescribed rate - rate obtained * loan amount * # of days that the taxpayer has enjoyed the money / 365). Some features apply to loans for discounted home purchase or relocation.
There is taxable benefit on share-option purchased when the option is exercised and there is capital gain when the operation is disposed. When the company is Canadian or when the action is listed on an exchange, there is no tax benefit upon exercise of the option, but only at the disposition, unless the share price upon exercise is greater than or equal to the share price at grant.