Paragraph 7(3)(a)

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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Locations of other summaries Wordcount
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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Locations of other summaries Wordcount
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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Locations of other summaries Wordcount
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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Locations of other summaries Wordcount
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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Locations of other summaries Wordcount
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...

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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...

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Words and Phrases
agreed

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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Locations of other summaries Wordcount
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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Locations of other summaries Wordcount
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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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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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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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...

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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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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...

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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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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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Locations of other summaries Wordcount
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...

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