Principal Issues: Whether a lottery ticket and the winnings from a lottery ticket, given to an employee by the employer as a reward, are taxable?
Position: Question of fact.
Reasons: An award for performance-related reasons does not qualify for CRA's current policy on gifts or awards. The taxpayer is required to include in income from office or employment the value of benefits of any kind whatever received or enjoyed in the year in respect of, in the course of, or by virtue of, an office or employment. A prize from a draw as a result of a ticket provided to the employee by the employer would not be a benefit of employment in certain circumstances such as when the draw is open to the general public, the draw is not operated or controlled by the employer, and the prize is not provided by the employer. Lottery winnings are generally not taxable as they are not considered income from a source, pursuant to 40(2)(f).
2010-036026
XXXXXXXXXX Gillian Godson
(613) 957-9229
May 11, 2010