Holiday Trips, Other Prizes and Awards

Rules of Application

• A holiday trip or other non-incentive type award given to an employee is considered a taxable benefit.
• Holiday trips and other prizes may not be considered a taxable benefit if given as incentive award (see section on Gifts and Incentive Awards).

Computation of Benefit

• Benefit = FMV of the trip, vacation or award.
• If cash payment is given, no GST/HST or QST implications.
• If payment in kind and it is a taxable supply, GST/HST and QST apply on that part of the prize or award.