An amount that covers the fees that an employee would have had to pay to use a recreational facility had the facility not been provided free of charge or for a nominal fee does not constitute a taxable benefit for the employee if you are the primary beneficiary of the benefit gained by the employee.

This also applies to dues you pay on behalf of the employee for membership in a social club or sports club. However, where such membership serves a social purpose and is of little or no advantage for your business, the dues you pay constitute a taxable benefit for the employee and must be included in boxes A, G, I and L of the employee's RL-1 slip (see courtesy translation RL-1-T).

An amount that covers user fees for a recreational facility and any membership dues you pay to a social club or sports club are not considered a taxable benefit if they are a gift given to an employee for a special occasion or a reward given in recognition of certain accomplishments and the total value of all such gifts and rewards given to the employee in the year does not exceed $500 (including taxes).

Moreover, if you provide meals and accommodation free of charge to an employee (for example, at a resort or a hunting or fishing lodge that you maintain), the value of this benefit (including GST and QST) must be included in boxes A and V and, where applicable, in box G or box I of the employee's RL-1 slip (see the Benefit Provided to an Employee page).