A taxable benefit is the value of a benefit an employee receives because of their employment, which paragraph 6(1)(a) of the Income Tax Act requires the employee to include in income. The rule reaches benefits received in respect of, in the course of, or by virtue of an office or employment, whether paid in cash or provided in kind.
Common examples include personal use of an employer-provided vehicle, employer-paid premiums for certain insurance, employer-funded personal travel, and below-market loans. Some benefits are specifically excluded or valued under detailed rules, such as the standby charge and operating-cost benefit for automobiles. For owner-managers, a benefit may be assessed either as an employment benefit or as a shareholder benefit under subsection 15(1), depending on the capacity in which it was received.