CRA will not accommodate backdating as of the year end re the 3-year SDA bonus exception

A right which otherwise might be taxable under the salary deferral arrangement rules is excluded from the SDA definition if it is a right to a bonus for services rendered in Year 1 which is paid within three years following the end of Year 1 (i.e., by the end of Year 4). CRA will not extend this deadline by a few months to permit performance-based criteria for Year 4 (which affect the amount of the ultimate payout) to be measured based on year-end results for Year 4. CRA noted that the calculation of the three-year deadline was less ambiguous in the English than in the French version.

Neal Armstrong. Summary of 7 October 2016 APFF Roundtable, Q.4 under s. 248(1) – salary deferral arrangement – para. (k).