During a webinar with the Association de planification fiscale
et financière (APFF) on April 14, 2020, the Canada Revenue
Agency (CRA) was asked whether amounts paid by an employer to an
employee for the purpose of acquiring equipment to work from home
will be treated as a taxable benefit for the employee. The CRA was
then asked if its answer would be different if the amount paid by
the employer is conditional on the employee providing the employer
with a proof of purchase.
The CRA provided its position on these questions on April 22,
2020.
The CRA answered that employees are usually required to include
in their income the amount of an allowance they received from their
employer and for which they are not required to justify the use.
This requirement will not change because of the COVID-19
pandemic.
