Quote:
Originally Posted by ceadog
People also often don't realize that airmiles and such are a taxable benefit - so that free flight you got by putting your work expenses through a credit card actually comes with a tax bill when CRA catches up to you.
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Partially true. If you're using the credit card for business expenses in the normal course of business, then not taxable benefit. What does this mean??......If you are on business trip and put your meals and gas and hotel on your card, that's normal course of business. Or if you have to pick up some parts and the only way to pay for them is by credit card, that is also normal course.
BUT.......if your company orders large amounts of goods constantly from a supplier and you pay for them with your personal card...that is NOT normal course of business. If you pay the companies utilities on your card and then claim the expense that is NOT normal course of business.
An easier way to explain it is, if your company can pay for the items by cheque or on account, but you decide to pay for them by your personal credit card.......its going to be a taxable benefit.
Whether they ever go after you for it is another story.