Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Principal Issues: Is a bonus taxable?
Position: Yes
Reasons: A bonus is employment income and taxable under section 5 of the Act.
February 19, 2010
XXXXXXXXXX
Dear XXXXXXXXXX :
The office of XXXXXXXXXX , forwarded to my predecessor, the Honourable Jean-Pierre Blackburn, a copy of your correspondence, which was received on December 18, 2009, concerning the taxation of employment bonuses. You refer to a recent article about bankers not having to pay tax on their bonuses. I cannot provide any meaningful comment on its content or accuracy because I do not have a copy of the article in question. I can confirm that under Canadian income tax law, a bonus paid to an employee working in any type of employment is taxable as employment income.
I appreciate the opportunity to address your concerns.
Yours sincerely,
Keith Ashfield
Minister of National Revenue
Renée Shields
613-957-2049
2009-035257
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