In Dino Infanti “Employee Stock Option Rules and Legally Binding Agreements” Tax for the Owner-Manager 17:2 (April 2017), the author summarizes CRA technical interpretation 2016-0641841I7 (September 19, 2016). The technical interpretation, in light of Transalta Corporation v R, 2012 TCC 86, states that s 7 and s 110(1)(d) of the Income Tax Act (Canada) apply only if there is a legally binding agreement to issue shares.
Employee advances
Neal Armstrong notes that the CRA, in technical interpretation 2015-062357 (dated April 26, 2016), takes the position that an employee advance is taxable when received even if the amount must be repaid if the services aren’t performed.
Employee theft
Mark Tonkovich, “Theft by Owners or Senior Employees: Deductibility of Losses” (Feb 2016) 6:1 Canadian Tax Focus, analyzes employee theft as discussed in Income Tax Folio S3-F9-C1, “Lottery Winnings, Miscellaneous Receipts, and Income (and Losses) from Crime”. The Folio sets…
Payments to non-residents
The CRA concluded that Canco was not required to withhold from incentive amounts paid to the non-resident employees of dealers of Canco’s profits. The incentive amounts amounts related to warranties registered on Canco’s products. The CRA, however, stated that Canco…
Car logo
The CRA takes the view that a section 6 standby charge is not reduced by a contract of employment that requires the employee to drive a company car at all times, even for personal use, where the car is decorated…
Bike stands
Neil Armstrong notes the following CRA positions on employee benefits from the 2015 APFF Conference: Providing a bike stand area for employees does not confer a benefit if the employees’ usage of it is “difficult to quantify and measure”. Providing…
Personal services business
C.J. McCarty Inc. v R, 2015 TCC 201, is a good recent analysis of whether the personal services business rules applied to a taxpayer in light of Wiebe Door and Sagaz. Bruce Russell, “McCarty – A Personal Services Business?” Tax…
Stock options and death
From Andrew Morreale, “Stock Option Deduction Is Available on Death” Canadian Tax Focus 5:3 (August 2015): An employment benefit in respect of unexercised employee stock options that arises on death is eligible for the paragraph 110(1)(d) deduction through the use…
Worker status and intention
Bruce Russell, in “The Role of Intent in Determining Worker Status” Tax Hyperion 12:3 (March 2015), notes that recent Federal Court of Appeal jurisprudence seems to require a two-step analysis when determining worker status. The first step attempts to ascertain…