Occam said:Again, if I understand things correctly - there are two options available:
1. Make you pay for parking
2. Hit you with the value of parking as a taxable benefit.
If the market value of the parking spot is $100 per month, that means I'd pay $1200 per year out of my pocket for the parking spot under option #1.
However (and correct me if I'm wrong as to where the benefit is applied in a tax scenario), if option #2 were in play, I'd get $1200 in benefits added to my annual taxable income, but only pay whatever taxes apply according to the marginal tax brackets. That means I'd probably only be out of pocket ~$500 for the year.
Why, other than to maximize revenue, would the Crown choose to force people to pay for their parking, when a taxable benefit would be the more advantageous option to the members?
in a nutshell, yes that's how it works. If you took option two yes. But you also have to factor in CPP and EI deductions that will also increase and it could potentially put you in another tax bracket as well.
And the Crown isn't forcing anyone to pay for their parking. While it may be a more advantageous option for the members it is an admnistrative nightmare to manage, meaning more staff, more money when the easy solution is to just let the member pay as they see fit. And not all government facilities are government owned. They pay rent, lease etc many many locations and parking revenue does not go back into the coffers in most cases. And the facilities that are DND owned that would charge parking do not have enough parking to begin with so really we are not talking about a lot of money here in the grand scheme.