Use of phantom plans as EPBs (pp. 9 – 14)
- An employee benefit plan (EBP) can be used to acquire employer or parent company shares on the open...
Flow-through advantage of EPSP (p. 16)
- Unlike employee benefit plans (EBPs), EPSPs are permitted (under ss. 144(4) and (8)) to flow-out capital...
Non-taxable distribution contrasts with EBP (p. 16)
- In the case of an EPSP used to acquire employer shares, s. 144(7.1) permits it to distribute...
Implications and handling of EPSP forfeited amounts (p. 17)
- By containing specific provisions permitting an EPSP participant to deduct forfeited...
Use of EPSPs for open market share purchases for small amounts “out of profits” (pp. 17-18)
- EPSPs seem to be used quite frequently to...
S. 7(6) requirements (pp. 20-21)
- S. 7(6) deems a sale of securities by the s. 7(6) trust to the employee to be the same as a sale by the...
Use of s. 7(2) trusts predominantly by CCPC employers (p. 22)
- S. 7(2) trusts are not common where the employer is not a CCPC, since the employee...
Example of s. 8(12) deduction offsetting a simultaneous s. 7 inclusion (p. 23)
- Where a CCPC employer has its common shares to a s. 7(2) trust as...
Considerations for structuring a market maker trust (pp. 40-43)
- Given the specified employee rules, market maker trusts are commonly used in...