Toronto city councillors have been told to surrender their free Metropasses immediately or risk paying back taxes on them after the Canada Revenue Agency deemed them a taxable benefit.

In an email to councillors on Thursday, TTC chief general manager Gary Webster said a CRA compliance audit of the City of Toronto for 2006 and 2007 found they should have been paying taxes on the freebie worth about $1,100 a year.

Ottawa “will not retroactively assess taxes for the 2006 and 2007 taxation years as long as your 2010 transit pass is immediately revoked by the TTC. Accordingly, passes must be returned to the TTC,” Webster wrote.

The CRA is also looking at councillors’ free passes to the Toronto Zoo and other city facilities.

The politicians could, as with the transit pass, formally request them and acknowledge they have to pay taxes for the benefit.

“Touchdown!” cheered Etobicoke councillor and mayoral candidate Rob Ford, who has been fighting for years to scrap perks for councillors, including free Sony Centre passes.

He said that, after failing to convince council to end freebies, he complained to the CRA years ago and was told last year that the agency was investigating.

“It took 10 years but, at the end of the day, councillors will have to pay to get on the bus like everyone else,” Ford said.

He plans to investigate if councillors will be able to pay taxes on their passes out of their $53,100 office budget – calling it a “bad joke” if they can.

Read more about: