Company Events & Door Prizes

In a Technical Interpretation, CRA was questioned about door prizes received by all attendees at a company social function.

Door Prizes at Company Functions

CRA commented that their tax-free $500 gifts and awards policy would apply to all attendees including the employee, the employee?s spouse, and all other non-arm?s length individuals that received a gift.

It was suggested that gift cards might be given as door prizes. CRA stated that these near cash gifts would not be included in the $500 gifts and awards policy. Instead, the near cash gifts would be taxable benefits to the employees.

Additional details related to CRA’s gifts,awards, and door prizes policy are available at www.cra.gc.ca/gifts

 

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