Transit Passes to Be Taxed Soon

It appears the government is looking to tax the transit passes given to family members of transit workers.

The Canada Revenue Agency (CRA) is moving to not only tax those family transit passes, whether they are used or not, but to do so retroactively to 2003.

The “tax grab” would affect about 4,000 people in Ottawa.

The move by CRA is in the relatively early stages and wanted us to intervene on it right away.

Transit workers are turning in their family member pass in fear of having to pay exorbitant back taxes.

CRA is simply applying the law regarding taxable benefits as it was prior to July 1, when the government’s new budget took effect.

CRA consider the transit pass tax credit when making their audits of all taxable benefits.