In a 2013 Technical Interpretation, CRA was
questioned about door prizes received by all
attendees at a company social function.
CRA commented that their tax-free $500 gifts
and awards policy would apply to all attendees
including the employee, the employee’s spouse,
and all other non-arm’s length individuals that
received a gift.

It was suggested that gift cards might be given
as door prizes. CRA stated that these near cash
gifts would not be included in the $500 gifts
and awards policy. Instead, the near cash gifts
would be taxable benefits to the employees.
Additional details related to CRA’s gifts and
awards policy are available at