Amid uproar, feds to remove wording on employee-discount tax, call for review

The federal government appears to be doing away with a controversial tax policy interpretation that would have seen employees taxed for discounts they get at work.

Amid a growing controversy, a spokesman for the National Revenue Minister Diane Lebouthillier said Wednesday that the government will pull the new wording at the heart of the debate from the Canada Revenue Agency website.

He said the CRA made the original decision to change the wording, not Lebouthillier.

``This document was not approved by the minister and we are deeply disappointed that the agency posted something that has been misinterpreted like this,'' John Power said in an emailed statement.

The CRA will hold an internal review on the wording change, which will be followed by a consultation on the issue with industry groups, he added.

The former wording in the employer's guide on the issue of employee benefits was to be reinstated as early as Wednesday afternoon.