RSM324H1 Chapter Notes - Chapter 4: The Employer, Vehicle Insurance, Phosphoribosyl Pyrophosphate
Document Summary
Only if individual is considered to be employed by another party. Considered employed when they agree to provide their services, at the full direction and control of the employer, in return for specific salary or wage s. If self-employed they earn business income rather than employment income. Control test, ownership of tools test, change of profit or loss test, integration test. Employment income fundamental rules and basic formula. Include in the year it was received, not necessarily earned. The value of all benefits of any kind whatsoever if received or enjoyed in respect of or by virtue of an office or employment must be included in the taxpayer"s income. Determined as either the cost to the employer of supplying the benefit or the fair market value of the benefit, whichever is lower. Look at the tax act to see which benefits are taxable and which aren"t. To the extent that a car is for personal use, a taxable benefit results.
