Taxation of Free or Subsidized Travel Benefits for personal benefit of an employee or shareholder

If your company owns or leases an aircraft for business purposes and it makes a flight for the primary purpose of providing free or subsidized travel for the personal benefit of an employee or shareholder, a taxable benefit for Canadian income tax purposes will result for the employee or shareholder. The amount of the income tax benefit is usually computed as the cost of a regular first class ticket to the same destination.