Submitted by Anonymous (not verified) on Sun, 11/29/2015 - 02:17
stock option reimbursement in year of grant
Under an agreement between a non-resident public company (Parentco) and its wholly-owned Canadian subsidiary (Canco), Canco reimburses Parentco...
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Principal Issues: The parent company (Parentco) grants employee stock options or share awards to the subsidiary's (Canco's) employees. Canco reimburses Parentco an amount equal to the fair value at the grant date of the options or share awards. Would the reimbursement constitute a benefit paid by Canco to Parentco, such that Part XIII applied to payment?
Position: No, however the method used to compute fair value may be reviewed.
Reasons: It would not be unreasonable for Parentco to recoup the portion of the stock option or share award benefit that it has effectively provided to the employees on Canco's behalf.
dispositions that generate the refund are not limited to redemptions of the shares
226
Principales Questions: Several questions regarding the tax consequences of shares of a cooperative being held in an RRSP in light of the anti-avoidance provisions relating to prohibited investment.
refund request not related to issues in waiver issues
119
Principal Issues: Whether a refund may be issued where the application for the refund was not made prior to the statute barred date, however a valid waiver identifying specific issues was filed with the Minister within the normal reassessment period.
Position: No, unless the request for refund is based on issues which are identified in the waiver.
Reasons: Paragraph 164(1)(b) does not provide for a refund beyond the period within which the Minister would be allowed under subsection 152(4) to assess tax payable, regardless of whether a waiver was filed for the taxation year.
