It is said that one should not pronounce upon those matters that one does not understand. Any reading of the Income Tax Act would tell you that such benefits are taxable.  The argument that such benefits are provided to gain loyalty of employees has no connection with the taxation of such benefits.  Bonuses and higher rates of wages are also provided for the same reasons, i.e. to gain employee loyalty. should those too be exempted from taxation?  I understand if the Minister of Nation Revenue is getting cold feet on this issue (politicians are known for throwing their employees and staff under the bus when it suits them), but please do not blame the CRA officials. They don't write legislation, they just implement it.  Blame Department of Finance and Parliament who write and pass legislation, in that order, for the taxation laws you disagree with.