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.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues:When are benefits under a specific share purchase plan taxable?
Position TAKEN:routine general explanation provided
Reasons FOR POSITION:prior letters on nearly identical plans.
January 24, 1995
Toronto District Office Head Office
G. Wright Rulings Directorate
Client Assistance 471-5-1 W. C. Harding
(613) 957-8953
7-943090
XXXXXXXXXX
This is in reply to your facsimile of November 11, 1994 in respect of the above noted plan.
It is our understanding you want to know when section 7 and subsection 110(1)(d) of the Income Tax Act (the "Act") should apply to restricted stock awards made under section 7 of the plan.
Attached are copies of technical interpretations issued by this division in respect of plans that are very similar to the present plan. You may find these of assistance. In summary, it is our opinion section 7 and subsection 110(1)(d) of the Act should apply to awards made under section 7 of the plan, at the time the prospective recipient of a proposed award has executed an agreement accepting the award.
for Director
Financial Industries Division
Rulings Directorate
Policy and Legislation Branch
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