The CBAA has prepared a briefing for you based on the verbal representation made to us by the CRA on August 3rd regarding its proposed administrative policy on personal use of company-owned aircraft in Canada.  Please read our complete summary, HERE, in order to review scenarios that reflect the implications of the proposed policy.

 

CBAA has until August 21st, 2017 to provide stakeholder input to the CRA.  As a matter of urgency, please provide your comments on how these proposed administrative policies will impact your business by Saturday, August 19th.  Please send your input directly to me, at rtoering@cbaa.ca

 

WHAT YOU NEED TO KNOW

  • The information in this email and our brief is based on a verbal representation made by CRA.  Nothing was presented to us in writing;
  • The information we are sharing is a general discussion only and is not legal advice in respect of any particular set of facts;
  • CRA has proposed three categories in its administrative policy; two categories in which the person receiving the personal benefit DOES NOT control access and use of the aircraft for personal use and the third category, in which the person receiving the personal benefit DOES control access and use of the aircraft for personal use;
  • CRA has not yet provided formal definitions for key terms, including “control of access and use” .

 

NEXT STEPS

The CRA will then issue memos on the new administrative policy to its regional auditors.  After that, we expect that a tax folio would be made public by publication on the CRA website.