Paul Carenza, Chris D’Iorio, "Update on Equity-Based Compensation in Canada: Market Trends and Technical Developments", draft 2021 Conference Report paper (Canadian Tax Foundation)

Summary Under
Tax Topics - Income Tax Act - 101-110 - Section 110 - Subsection 110(0.1) - Specified Person

Non-consolidation where the qualifying person is a portfolio investment (pp. 7-8)

  • Since, under GAAP, “investment entities” are required to...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Summary Under
Tax Topics - Income Tax Act - 101-110 - Section 110 - Subsection 110(1.42)

Limited scope of ordering mechanism (p. 10)

  • The only ordering that occurs under s. 110(1.31) is ensuring that all other grants contemporaneous...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Summary Under
Tax Topics - Income Tax Act - 101-110 - Section 110 - Subsection 110(1.44)

No s. 110(1.1) election necessary where s. 110(1.44) applies

  • Since s. 110(1.44) is intended to have the same effect (of making a deduction...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Summary Under
Tax Topics - Income Tax Act - 101-110 - Section 110 - Subsection 110(1.1)

Ability to forego a corporate tax deduction on less than all the rights (pp. 12-13)

  • S. 110(1.1) has been amended to replace the reference to...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Summary Under
Tax Topics - Income Tax Act - 101-110 - Section 110 - Subsection 110(1.9)

Notice where employer is not the plan administrator (p. 13)

  • No specific form of notice is prescribed.
  • In the common situation where the Canadian...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Summary Under
Tax Topics - Income Tax Act - 101-110 - Section 110 - Subsection 110(1) - Paragraph 110(1)(e)

Issues respecting availability of the s. 110(1)(e) deduction (pp. 13-15)

  • In order for a s. 110(1)(e) deduction to be available to the employer...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Summary Under
Tax Topics - Income Tax Act - 101-110 - Section 110 - Subsection 110(1.3)

Potential to free-up annual limit room through exchange of underwater options (pp. 15-16)

  • If, for example, in 2022, an option agreement, that had...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Summary Under
Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Salary Deferral Arrangement - Paragraph (k)

Potential ability to issue cash-settled RSUs early in a year (pp. 29-30)

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.