April 22, 2020 – the Canada Revenue Agency (the “CRA”) announced it would allow special, favorable tax treatment to employees working from home during the COVID-19 pandemic.
The CRA will accept that the reimbursement of an employee, for amounts spent on personal computer equipment to enable the employee to work from home, will not be a taxable benefit to the employee. This relief is to apply for amounts up to $500 and only in respect of amounts for which the employee provides receipts.
This departs from the standard-course taxation of home office expenses, according to which if an employee receives a reimbursement for home office equipment, it is characterized as a personal expense, primarily for the employee’s benefit, and therefore a taxable benefit.
