CPPM Procedure Chapter J: Miscellaneous Administration

This chapter of the Core Policy and Procedures Manual describes various procedure requirements in support of government operations including employee-related payroll issues and other matters as they arise.



J.1 Employer-Provided or Subsidized Parking

If an employee is provided free or subsidized parking by his/her employer, it constitutes a taxable benefit under the Canada Revenue Agency's (CRA) rules unless one of the following exemptions apply:

  1. fair market value of the parking space cannot be determined (e.g., scramble parking or where free parking is available to both employees and non-employees); the employer provides parking for business purposes to employees who regularly* have to use their own automobiles or one provided by the employer to perform their duties; or
  2. the employee has a disability.

To ensure that the Province is in compliance with CRA rules and is not assessed any financial penalties, ministries will implement the following procedures:

  • evaluate parking facilities and determine where free or subsidized parking is provided to any employee(s);
  • confirm the provision of free parking to ministers and deputy ministers. This parking is normally exempt as they are provided government vehicles or are required to use their own vehicles regularly* in the performance of their duties. Exempt status, however, must be confirmed by the ministers and deputy ministers;
  • for all other employees, the deputy minister or their delegate will determine if a taxable benefit exemption applies and will defend this assessment in the event of any CRA audit;
  • assess employees' taxable benefits for the difference between fair market value and any amount the employees pay unless they are exempt. Note that fair market value must include 5% GST; and
  • implement scramble parking where possible. Over-subscription of at least 25% is suggested.

* Although CRA will not commit to a definition of "regularly", they have implied that 50% of the time would be accepted.


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