Submitted by Anonymous (not verified) on Sun, 11/29/2015 - 02:18
Under a recent change in the Veterans Independence Program, recipients would get lump sums to pay vendor invoices rather than sending the invoices...
The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.
Principal Issues: Whether changes to the delivery of the Veterans Independence Program will affect the tax treatment of amounts received by eligible clients.
Position: No. The change from a contribution to a grant arrangement will not result in the taxation of payments in the hands of eligible clients.
Reasons: Pension payments, allowances or compensation that are received under or are subject to the Pension Act, are specifically excluded from income under paragraph 81(1)(d) of the ITA. These grants/prepayments are allowances which are subject to the Pension Act.
Principal Issues: Whether an employer qualifies for the AJCTC even though the registered apprenticeship contract is between the province and a trade union?
Submitted by narmstrong on Sun, 04/08/2018 - 02:13
related preparatory and sick leave periods can be included in qualifying period computation
An individual performed various preparatory work in Canada under a service contract for a qualifying activity for the purposes of the OETC, then...
The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.
Principal Issues: Whether the taxpayer qualifies for the OETC? Determination of a qualifying period of more than six consecutive months as required by subsection 122.3(1) of the Act.
Position: Question of fact. A qualifying period may include a period of preparatory work, a sick leave and/or a holiday period in Canada and the employee may still remain eligible for the OETC provided that, throughout such qualifying period, substantially all of the individual's employment duties (90% or more) are performed outside Canada in connection with a qualifying activity of the employer.
Reasons: Application of the Act and review of all relevant facts. The employer's contract to carry on business outside Canada, as well as the employee's duties and employment contract are all relevant to the determination of whether or not a qualifying period exists.
Raisons: Deemed disposition is a disposition for Section 116 of ITA; the date of the change of use is deemed to be the first day of the year when the election under subsection 45(2) of ITA is rescinded; the delay is indicated at 116(3) of ITA
Principal Issues: Are employees in receipt of a taxable benefit when the employer reimburses their monthly cell phone plan and the phone is required to perform their employment duties?
Position: Question of fact but probably no.
Reasons: The amount would be a reimbursement of an expense related to employment duties which is not taxable.
Principal Issues: 1) Would the election under subsection 107(2.01) become void because a property is distributed to multiple beneficiaries pursuant to subsection 107(2)?
2) Where a property, being a residence, is distributed to multiple beneficiaries, can each beneficiary claim the principal residence exemption provided for in paragraph 40(2)(b) of the Act?
Position: 1) No. 2) Question of fact.
Reasons: 1) We have ruled that subsection 107(2) is applicable in instances where a trust distributes a residence to more than one beneficiary.
2) It is a question of fact whether the property qualifies as a principal residence for each beneficiary.
Principal Issues: Whether a taxable benefit would arise where an employer offers its employees a credit card with a discounted interest rate, relative to that ordinarily charged to non-employee cardholders?
Position: Where the credit card is a loan for purposes of subsection 80.4(1), any benefit so determined by virtue of this provision is included in income under subsection 6(9). Where the provisions of subsection 80.4(1) of the Act do not apply, the value of a benefit received by an employee in respect of a reduced interest rate may be assessed pursuant to paragraph 6(1)(a) of the Act.
Reasons: Revolving credit instruments such as credit cards constitute loans for purposes of subsection 15(2) and by extension, appear to be loans for purposes of subsection 80.4(1). It is always a question of fact, however, whether such loans have been received because of an office or employment. Where the provisions of subsection 80.4(1) do not have application, a benefit may be included under paragraph 6(1)(a).
Principal Issues: Whether 75(2) would apply to attribute the trust income to the beneficiary
Position: Most likely
Reasons: It is our view that property was transferred by the capital beneficiary to the trust and the subject share is a substituted property of the property transferred and the said share may revert to the beneficiary.
