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Old Jun 19, 2009 | 2:29 pm
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nabeelj
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Originally Posted by nabeelj
The way I read the article, it implied employees can ignore the benefit on their taxes. I think business owners (i.e. the business Avion cardholder) would still need to consider the points as business taxable income (not personal taxable income though).

Can anyone point to the actual CRA bulletin?
Answering my own Q, found the document at CRA: http://www.cra-arc.gc.ca/E/pub/tp/it...itnews40-e.pdf

The CRA will not tax points earned by employees who use their personal credit cards for business purposes with the expectation of being reimbursed. As I had expected, the document seems to indicated that points earned by the business on business credit cards continue to be taxed (i.e. you can not pool your personal and business Avion points, technically speaking, and not expect to have to pay tax on the points earned on the business card).

Now, small business owners will argue that they could use a personal card for all business purchases and then be "reimbursed" - my suspicion is the CRA would throw that argument out if audited.
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