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.