News & Insights

Taxable Benefits Guide Updated by Canada Revenue Agency

Tax Development Dec 28, 2021

The Canada Revenue Agency (CRA) has released an updated version of publication T4130, Employers’ Guide – Taxable Benefits and Allowances. This guide explains an employer’s responsibilities in determining taxable benefits, including how to calculate the value of benefits and allowances and the GST/HST liability related to such benefits.

A COVID-19 pandemic relief policy allowing employers to reduce the automobile standby charge and operating cost benefits without meeting all of the normal conditions continues to be available for 2021. Under this relief, employees who have been provided with an automobile by the same employer in 2019, 2020, and 2021 may opt to use their 2019 automobile usage to determine whether the vehicle was used primarily (i.e., more than 50%) for business purposes. This temporary relief has been put in place to address the fact that many employees may have used their employer-provided vehicle less often for business purposes because of pandemic lockdowns and reduced business activity, potentially impacting their eligibility for the reduced standby charge. 

Further details on the temporary relief are available at: Department of Finance Announces Temporary Adjustment to Standby Charge for 2020 and 2021.

New for 2021, the CRA has changed the vesting rules for security options for non-Canadian controlled private corporations, effective July 1, 2021.