Cases
Des Groseillers v. Quebec (Agence du revenu), 2022 SCC 42
An individual who donated some of his employee stock options on the shares of a public company to arm's length registered charities, claimed the...
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Tax Topics - Income Tax Act - Section 69 - Subsection 69(1) - Paragraph 69(1)(b) | s. 69(1)(b) applied to donated employee stock options | 400 |
See Also
Agence du revenu du Québec v. Des Groseillers, 2021 QCCA 906, aff'd 2022 SCC 42
An individual who donated some of his employee stock options on the shares of a public company to arm's length registered charities, claimed the...
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Tax Topics - Income Tax Act - Section 69 - Subsection 69(1) - Paragraph 69(1)(b) | s. 69(1)(b) deems FMV proceeds for an employee stock option gift for s. 7 purposes | 212 |
Des Groseillers v. Agence du revenu du Québec, 2019 QCCQ 1430, rev'd 2021 QCCA 906
An individual (Des Groseillers) who donated some of his employee stock options on the shares of the qualifying person (“BMTC”) to arm's length...
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Tax Topics - Income Tax Act - Section 7 - Subsection 7(1) - Paragraph 7(1)(b) | no s. 7(1)(b) application to option cash-out amount assignments | 514 |
Tax Topics - Income Tax Regulations - Regulation 100 - Subsection 100(1) - Employer | Opco paid directors’ fees of Pubco parent as agent | 146 |
Rogers Estate v. The Queen, 2015 DTC 1029 [at 124], 2014 TCC 348
The taxpayer, who was the CEO of a Canadian corporation ("RCI") whose voting and non-voting shares both traded on the TSX, did not deal at arm's...
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Tax Topics - Income Tax Act - Section 15 - Subsection 15(1) | cash surrender of employee stock options for their value was not shareholder benefit | 124 |
Tax Topics - Income Tax Act - Section 39 - Subsection 39(1) - Paragraph 39(1)(a) | capital gain can arise from property which is not capital property | 271 |
Tax Topics - Income Tax Act - Section 5 - Subsection 5(1) | exercise of stock option surrender plan for FMV was not "remuneration" | 121 |
Tax Topics - Income Tax Act - Section 9 - Capital Gain vs. Profit - Options | holding one's employee stock options until just before they expire is not typical of an adventure in the nature of trade | 185 |
Mathieu v. The Queen, 2014 TCC 207
In successive years, the taxpayer cash-surrendered employee stock options to the corporation ("Forages Garant") which had granted the options. ...
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Tax Topics - Income Tax Act - Section 251 - Subsection 251(2) - Paragraph 251(2)(a) | separated wife was related | 173 |
Tax Topics - Statutory Interpretation - Interpretation Act - Subsection 45(2) | may look at subsequent amendment to determine whether it changed the law | 132 |
Tax Topics - Statutory Interpretation - Specific v. General Provisions | stock option rules more specific than employee benefits | 55 |
Ward v. The Queen, 98 DTC 2097, [1998] 4 CTC 2129 (TCC)
Shares issued to the taxpayer were found to be in satisfaction of consulting fees owed to him that had been written off by the corporation in...
Aylward v. The Queen, 87 DTC 1097 (TCC)
Before concluding that s. 7(1.1) governed the issuance of shares to the taxpayer, Margeson TCJ. found that they were issued to the taxpayer in...
Administrative Policy
7 October 2016 APFF Roundtable Q. 21, 2016-0655901C6 F - Section 7 and bonus paid in share
In accordance with the terms of the employment contract, a Canadian-controlled private corporation pays a bonus to an employee which is payable in...
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Tax Topics - Income Tax Act - Section 84 - Subsection 84(1) - Paragraph 84(1)(b) | PUC of shares issued in satisfaction of bonus equal to bonus amount | 122 |
Tax Topics - Income Tax Act - Section 7 - Subsection 7(1.1) | 7(1.1) applicable to non-discretionary bonus payable in shares | 178 |
11 October 2013 Roundtable, 2013-0495911C6 F - Insurable employment
Two corporations, each having a sole shareholder, are partners of a partnership ("S.E.N.C.") which, in turn, pays salaries directly to each such...
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Tax Topics - Other Legislation/Constitution - Federal - Employment Insurance Act - Section 5 - Subsection 5(2) - Paragraph 5(2)(b) | employment by employees of partnership of corporations is treated as joint employment by those corporations | 90 |
2004 Ruling 2004-0056921R3 - stock options; conversion of plans
The replacement of a SAR plan of a private-company (CCPC) employer with an agreement to acquire its preferred and common shares that is subject to...
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Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Salary Deferral Arrangement | share sale right to related private company | 42 |
Tax Topics - Income Tax Act - Section 7 - Subsection 7(3) - Paragraph 7(3)(a) | 68 |
2004 Ruling 2004-0056921R3 - stock options; conversion of plans
Ruling that s. 7(3)(a) would govern a plan under which a Canadian-controlled private corporation agrees to issue common shares and preferred...
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Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Salary Deferral Arrangement | share sale right to related private company | 42 |
Tax Topics - Income Tax Act - Section 7 - Subsection 7(3) - Paragraph 7(3)(a) | 115 |
2002 Ruling 2001-0107613 - EMPLOYEE OPTION TRANSFERS
Where an arm's length employee transfers options to a personal holding company for no consideration, he will not, except as provided by s. 7, be...
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Tax Topics - Income Tax Act - Section 7 - Subsection 7(1) - Paragraph 7(1)(c) | 86 |
8 January 2001 Internal T.I. 2000-0053657 - RETIRING ALLOWANCE TERMINATION
A s. 7 employee stock option plan can be implemented in substitution for an existing SAR Plan without any immediate tax consequences. "However, we...
10 May 2001 External T.I. 2001-0075685 - EMPLOYEE STOCK OPTION IN A RRSP
Where an employee has contributed employee stock options to his RRSP, by virtue of s. 7(3)(a) there would be no income inclusion at the time of...
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Tax Topics - Income Tax Act - Section 251 - Subsection 251(1) - Paragraph 251(1)(c) | 16 |
26 June 2000 External T.I. 2000-0018205 - Options, non-aim's length transfer
Where an employee transfers employee stock options to a wholly-owned corporation ("Holdco"), then by virtue of s. 7(3)(a) a benefit from his stock...
10 August 2000 External T.I. 2000-0016875 - SAR DISPOSITION, SHARES
Where an employee exercises his or her SAR rights and the property received is shares of a CCPC that is the employer, the provisions of s. 7 will...
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Tax Topics - Income Tax Act - Section 248 - Subsection 248(28) | 83 | |
Tax Topics - Income Tax Act - Section 84 - Subsection 84(3) | 83 |
18 February 1999 Internal T.I. 9900816 - STOCK OPTIONS, 7(3)(B), U.S. PARENT
Where Canadian employees of a Canadian corporation are eligible to participate in an employee stock option plan of an indirect U.S....
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Tax Topics - Income Tax Act - Section 7 - Subsection 7(3) - Paragraph 7(3)(b) | non-deductibility of reimbursements by Cdn employer to US parent | 78 |
6 December 1995 External T.I. 9527035 - TAXATION OF BENEFIT OF EMPLOYEE SHARE OFFERING
"If a benefit is received by an individual qua employee, paragraph 7(3)(a) requires that it be taxed under section 7 and not under any other...