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K.
Miscellaneous Administration Procedures
K.1
Employer-Provided or Subsidized Parking
K.1
Employer-Provided or Subsidized Parking
If an employee is
provided free or subsidized parking by his/her employer, it constitutes
a taxable benefit under the Canada Revenue Agency's (CRA) rules unless
one of the following exemptions apply:
- fair market value of the parking space cannot be determined (e.g.,
scramble parking or where free parking is available to both employees
and non-employees);
- the employer provides parking for business purposes to employees
who regularly* have to use their own automobiles or one provided by
the employer to perform their duties; or
- the employee has a disability.
To ensure that the
Province is in compliance with CRA rules and is not assessed any financial
penalties, ministries will implement the following procedures:
- evaluate parking
facilities and determine where free or subsidized parking is provided
to any employee(s);
- confirm the provision
of free parking to ministers and deputy ministers. This parking is
normally exempt as they are provided government vehicles or are required
to use their own vehicles regularly* in the performance of their duties.
Exempt status, however, must be confirmed by the ministers and deputy
ministers;
- for all other
employees, the deputy minister or their delegate will determine if
a taxable benefit exemption applies and will defend this assessment
in the event of any CRA audit;
- assess employees'
taxable benefits for the difference between fair market value and
any amount the employees pay unless they are exempt. Note that fair
market value must include 6% GST; and
- implement scramble
parking where possible. Over-subscription of at least 25% is suggested.
*Although CRA will
not commit to a definition of "regularly", they have implied
that 50% of the time would be accepted.
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