Tax change affects employee waivers

November 5, 2009

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SFU employees who used tuition waivers to pay for a dependent’s tuition in 2007 or later may qualify for a tax refund.

A federal appeal court recently rejected the Canada Revenue Agency’s (CRA) position that the waivers are a taxable benefit to employees.

In response, the CRA has directed that retroactive to 2007 the benefit will now be taxable to the dependent student and not the employee.

For the taxation years 2007 and 2008:

  • Payroll will issue amended T4 slips to employees in order to exclude the taxable benefit for tuition waivers relating to family members and, concurrently;
  • Student Financials will issue amended T4A slips to students/family members to include the benefit of the tuition waiver.

The applicable tax documents will be distributed along with regular 2009 documents in February.


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