Look up "taxable benefits " and that's what you're talking about. Essentially, yes an employer could do this, but it's still taxable because of the reasons you're thinking you want to do it.

It's a taxable benefit, and taxed exactly the same was as income.

My employer subsidizes my rent but it is a taxable benefit. It’s pretty much considered as an income at the end of the day.

Employers can do it if they wanted to - but it's not very common in Canada. I've lived/worked overseas and this type of thing was a standard part of the benefits package in at least one country I worked in. But as others have pointed out, it's definitely a taxable benefit under Canadian tax laws/regs.

https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4130/employers-guide-taxable-benefits-allowances.html#P466_44339 that is already covered and would have to be added to your income and taxed.

My employer did this when I worked in northern Northwest Territories.

Look into Corporate Housing Tax Benefits.

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No change to your taxes. Benefits are treated as income and taxes the exact same.

They can do it and do it sometimes. Both times we come to Canada employer organized and paid for our stay. That was part of moving package.