It seems to me many years ago that CRA (then Revenue Canada) tried to make the point that FF points earned on travel paid for by an employer were indeed a taxable benefit if they were redeemed for personal use. I think they quickly backed off when they realized that any kind of attempt at enforcement would be a lost cause.

I also recall reading a news report to the effect that the BC gov't sent a letter to either Canadian Airlines or AC pointing out their policy that points earned by gov't employees on gov't business would acrue to the benefit of the gov't. The airline replied that with the utmost respect, their policy was that the points accrue to the bum in the seat.^

As far as value is concerned, the maximum value appears to occur when you are prepared to redeem points for merchandise. If you want to redeem them for travel the value is something close to zero unless you are prepared to settle for traveling somewhere you don't want to go, on a day you don't want to travel. I find that if you go into it with that attitude you won't be so PO'd in the end.