24 January 2005 External T.I. 2005-0110211E5 - Taxable benefit Employer-Provided Parking

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.

Principal Issues: Clarification with respect to a recently published technical interpretation (2004-010115), wherein it was stated that if an employee is required to use his or her vehicle 3 or more days on a weekly basis for employment-related travel and requires the parking space for this purpose, the parking space would be considered to be used regularly for employment-related reasons and therefore, the employee would not be in receipt of a taxable benefit. Was this a 5 or 7-day week? If an employee who does not necessarily use his or her vehicle 3 or more days on a weekly basis qualify if the employee used it more than an acceptable percentage of time during the year?

Position: The reference to a week was in reference to a 5-day normal workweek. This was meant to be a general guide, such that an employee who is required to use the parking space for employment-related reasons more than half the number of workdays during a week, would be considered to have regularly used the space that week. This simply relieves the employer and employee from determining the amount of the benefit, if any, that otherwise would have to be included in income in respect of the personal use of the space for that week. Another benchmark could be appropriate, depending on the circumstances. What may be acceptable is a question of fact.

XXXXXXXXXX 		2004-011021
		Randy Hewlett, B.Comm.
		613-941-7239
January 24, 2005

Dear XXXXXXXXXX:

Re: Taxable Benefit Employer-Provided Parking

We are writing in response to your letter of December 22, 2004, wherein you requested clarification with respect to a recently published technical interpretation concerning the above-noted issue (our file 2004-010115).

In the letter we stated that if an employee is required to use his or her vehicle 3 or more days on a weekly basis for employment-related travel and requires the parking space for this purpose, the parking space would be considered to be used regularly for employment-related reasons and therefore, the employee would not be in receipt of a taxable benefit. You inquired whether we are referring to a 5 or 7-day week. You also asked if an employee who does not necessarily use his or her vehicle 3 or more days on a weekly basis would qualify if the employee used it more than an acceptable percentage of time during the year.

Our reference to a week in the technical interpretation was in reference to a 5-day normal workweek. This was meant to be a general guide, such that an employee who is required to use the parking space for employment-related reasons more than half the number of workdays during a week, would be considered to have regularly used the space that week. We would like to emphasize that this simply relieves the employer and employee from determining the amount of the benefit, if any, that otherwise would have to be included in income in respect of the personal use of the space for that week. Another benchmark could be appropriate, depending on the circumstances. We are not prepared, however, to generalize what may be acceptable without a complete knowledge of all the facts surrounding a particular situation.

We trust our comments will be of assistance to you.

Yours truly,

John Oulton, CA
for Director
Business and Partnerships Division
Income Tax Rulings Directorate
Policy and Planning Branch