From the National Post Saturday June 13 2009

http://www.financialpost.com/story.html?id=1691451


"The Canada Revenue Agency this week quietly relaxed its long-standing policy on the taxability of loyalty points earned while travelling on employer-paid business trips or incurring reimbursable business expenses. Many employees collect loyalty points on their personal credit cards for personal use, even when the underlying travel or business expense is ultimately paid by their employers. CRA had taken the position that if the employer does not control the points accumulated, it is up to employees to determine the fair market value of the free trip or merchandise received and include that amount in their income. The CRA will no longer require these benefits to be included in an employee's income, provided the points are not converted to cash, the plan is not considered to be an "alternate form of remuneration" and is not for "tax avoidance purposes."