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OTTAWA — The Liberals have invested $1 billion in the last two budgets to crack down on tax cheats.

But it’s probably fair to say that no one in government expected the tax-avoidance measures to target minimum wage store employees who get a 20 per cent discount on a pair of jeans, or restaurant workers coming off shift who get a meal at the end of the night.

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Yet that appears to be the consequence of a new interpretation of the Income Tax Act by the Canada Revenue Agency.

The Retail Council of Canada recently raised the issue at the House of Commons finance committee.

Karl Littler, vice-president of public affairs, cited the latest version of the CRA tax folio that advises employers that “when an employee receives a discount on merchandise because of their employment, the value of the discount is generally included in the employee’s income.”

He said the CRA has not treated these discounts as taxable benefits in the past but has indicated it will do so starting Jan. 1.