Click on the letter of the question to go to the answer provided
a) I would like a copy of the documentation that allows members of LCBO management to accept product samples or any items of value (including sporting/cultural/other events, travel costs and/or meals) from suppliers. This need not include any product samples that LCBO itself provides directly to managers on paid employment time for product knowledge purposes, but should include those provided by suppliers or non-LCBO personnel or organizations or full bottles/containers that the manager is allowed to take home or events that managers or their families are allowed to attend on their own time that are in any way funded by suppliers.
b) Are any samples or items of value mentioned in Question 7) above included in taxable benefits for Canadian Revenue Agency Income Tax return purposes, and are they disclosed in the amount of taxable benefits published under the Salary Disclosure Act?
RESPONSE # 207118: NO CHARGE.
FOI # 207118: RELEVANT PORTIONS OF THE ANSWER
a) There are two highly relevant items, which seem to be in direct conflict with each other, as follows:
1) From LCBO AM-0403-02 (see bottom of page), CONFLICT OF INTEREST, Page 2, Section Entitled "Gifts/Loans"
"Section 121 of the Criminal Code of Canada prohibits Crown employees from demanding, accepting or offering, or agreeing to accept, directly or indirectly, a commission, reward, or benefit of any kind, from a person who has dealings with the government or a government agency."
2) From LCBO AM-0101-03 HOSPITALITY POLICIES, Page 2, Section Entitled "Gifts and Gratuities"
Employees: No LCBO employee should accept any gifts or gratuities from any supplier organizeation, except for promotional items and items of a nominal value. The Board views gifts having a value over $200.00 per annum from any individual or organization as the nominal threshold. Any gift exceeding this figure should be reported in Trade Function Reports."
(my thoughts in blue, and italics)
To my understanding, # 2) above could be simply worded as "LCBO employees should accept promotional items and items of $200.00 or less from any individual or organization each year, and there is no need to inform anyone if they do." Wow, if the LCBO has 1,000 suppliers, that could really add up. And, as per below, tax-free.
I would also like to look at the word "should". The policy doesn't even enforce it by using the word "must"! I cannot possibly reconcile items 1 and 2 above as being in force in the same country, and to my mind the LCBO policy in 2) would seem to violate Canadian law as stated by the LCBO in 1).
Indeed, I cannot conceive of any full-time LCBO employee being so poorly paid as to need what I term GRAFT to get by. LCBO full-time employees are certainly well paid. (Nor can I see any supplier attempting to gift a part-time employee.)
If the original intention of this was to allow members of the trade to provide samples for LCBO employees to taste I would still protest that this policy would allow only the richest, biggest suppliers to determine what LCBO employees taste. I agree that product knowledge and tasting of many products is essential to properly serve the market, but any such tasting/product knowledge MUST be done on paid LCBO employment time, MUST be done fairly with a view to all suppliers, and MUST be conducted in a transparent matter. As to the size of samples no employee should need a full bottle to taste a product, yet I've heard anecdotal evidence that cases of the same product are being "sampled".
On an ethical basis, I believe that it is wrong for any employee in any position to affect LCBO decisions to accept personal gifts from any supplier of LCBO. To those I used to work with, even if your bosses tell you it is okay, most of you that I worked with did consider this practice wrong, and have a profound lack of respect for those "on the take".
Once you start accepting gifts you are selling your soul a nickel at a time...you are your own Reputation Control Board. You may also be committing a criminal act.
"In response to the second question regarding disclosure of items of value for CCRA income tax purposes or publication under the Salary Disclosure Act, the payroll department is not aware or has received declarations of items above the nominal value as defined by CCRA guidelines. Therefore no items of value have been declared for income tax purposes or are included in taxable benefits published under the Salary Disclosure Act to date. (Signed) Richard Whitelaw
To me this would seem to clearly state that no LCBO employee has ever declared gifts received for purposes of Canadian taxation. Very interesting given the issues brought forward in a) above touching on the Criminal Code of Canada. I attempted to contact both the Canadian Revenue Agency and the Ontario Ombudsman's Office about these issues immediately after reading the responses under FOI but in both cases was effectively told that they were not interested. I should also note that the Canadian Revenue Agency is almost completely insulated from contact with the public. I had to do much research to find any method of contacting them short of driving to their offices.
FOI # 207118: I received, at no cost, photocopies of portions of the LCBO Administrative Manual, Section AM 0101-03 pgs 1-3 HOSPITALITY POLICIES, and Section AM 0403-02 pgs 1-5, CONFLICT OF INTEREST, as well as a photocopy of a blank form titled "Trade Function Report". The response to # 207118 b) seems to have been made by Richard Whitelaw, Treasurer, LCBO.
b) Answer Received (LCBO response in black, normal - my thoughts in blue, and italics)
Treasurer
LCBO"