The Federal Court of Appeal ruled that a parking pass provided free of charge to an employee was subject to taxation, even though it had benefits for the employer's business.
The judge stated that despite the employer's belief that providing a parking pass to flight attendants enhanced their reliability and flexibility and the attendant's difficulty in commuting by other means, a flight attendant for Jazz Aviation LP was still given a taxable s. 6(1)(a) benefit when provided with a parking pass at the Calgary airport.
The judge emphasized that Jazz Aviation did not mandate its flight attendants to use their own cars for commuting purposes, thereby indicating that the cost of parking was a personal expense rather than an employment obligation.
Thus, providing the flight attendant with a parking pass resulted in a taxable benefit under s. 6(1)(a).
The court viewed the cost of parking as an ordinary and everyday expense.
Despite the business benefits to the employer, a parking pass provided free of charge is deemed a taxable benefit.
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