Tax Measures Under Canada’s COVID-19 Economic Response Plan

Other Tax Measures Supporting Individuals

In a recent webinar[69] with the CRA organized by the Chartered Professional Accountants of Canada (“CPA Canada”), the CRA provided more information on how certain rules on taxable benefits will be interpreted:

  • Commuting Costs: Where an employee is reimbursed or receives a reasonable allowance from their employer for travel expenses associated with travelling from home to their regular place of employment during the pandemic, the CRA will not consider this to be a taxable benefit.
  • Parking Costs: Employer-provided parking at the employee’s regular place of employment will not be considered a taxable benefit by the CRA where the regular place of employment is closed during the COVID-19 pandemic.
  • Home Office Equipment: Employer reimbursements of up to $500 of home office equipment or computer equipment will not be a taxable benefit, provided the equipment is needed for the employee to perform his/her duties of employment at home. CRA indicates home office equipment would include items such as desks or chairs. Furthermore, it was announced[70] that the CRA will allow employees working from home in 2020 due to COVID-19 with modest expenses to claim up to $400, based on the amount of time working from home, without the need to track detailed expenses, and will generally not request that people provide a signed T2200 form from their employers.

International Tax Measures for Businesses and Individuals

CRA’s Guidance[71] on international income tax issues raised by the COVID-19 crisis provides relief respecting adverse impacts of COVID-related travel restrictions. The guidance is as follows:

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