CRA finds that incentives received by sales employees directly from the goods manufacturer were not consideration for taxable supplies

Sales employees at a store who received sales performance incentive payments directly from the manufacturer were found not to be thereby receiving consideration for taxable supplies given that their work was performed qua employee of the store owner. This is consistent with the income jurisprudence finding that benefits received by an employee in recognition of work performed will be taxable benefits from employment even where they are provided by a third party (see Phillips).

Neal Armstrong. Summaries of 14 April 2025 GST/HST Ruling 246391 under ETA s. 123(1) – business and s. 242(2).