Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues: Is vacation pay or banked sick leave considered a bonus for purposes of the Act?
Position: No.
Reasons: They are forms of employment income separate and distinct from a bonus.
XXXXXXXXXX 981523
P. Sarazin
Attention: XXXXXXXXXX
June 23, 1998
Dear Sirs:
Re: Meaning of “Bonus” in Proposed Subsection 100(3.2) of the Regulations
This is in reply to your letter dated June 10, 1998, wherein you requested confirmation that the opinion expressed in our letter to you dated June 3, 1998 was that a lump sum payment for banked vacation pay and sick credits would not qualify as a bonus for the purposes of proposed subsection 100(3.2) of the Income Tax Regulations.
We confirm, as expressed in our letter dated June 3, 1998 and our telephone conversation of June 23, 1998 (XXXXXXXXXX/Sarazin), that vacation pay and sick credits will not be considered a bonus for the purposes of proposed subsection 100(3.2) of the Regulations.
We trust the above comments will be of assistance to you.
Yours truly,
Paul Lynch
for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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