According to the CRA, a free parking spot is considered a taxable benefit at fair market value, unless there is "regular" business usage.
The CRA acknowledges that a free parking spot provided to an employee for business purposes does not result in a taxable benefit, but only if the employee's car is used "regularly" for work.
However, the CRA does not consider parking offered for irregular or extended work hours as being for business purposes.
If a taxable benefit is determined, it is calculated based on the FMV of the spot, using the market price of a similar space in the surrounding area with the same conditions of use.
“Please note that the information provided in this article is of a general nature and may not be accurate for your specific situation. The information is current as of the date of posting and is not intended to provide legal advice. It's always recommended that you consult with a professional accountant and lawyer for personalized guidance and advice."