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.
DIRECTOR GENERAL'S OFFICE ADM 961052
AUTHOR
SUBJECT OR CORPORATE CASE FILE
April 19, 1996
MEMORANDUM FOR DENIS LEFEBVRE
SUBJECT: Guaranteed Home Sale Plan (GHSP)
This memorandum is in response to your request for confirmation as to the taxation of benefits received by an employee under the new GHSP.
The plan provides for a guaranteed sale price that is determined based on a fair market valuation of the property made by a real estate service provider and a standard marketing time frame of 90 days. If the property is not sold within 90 days, the employee provides the employer's contractor with a power-of-attorney for the disposition of the property and receives the equity in the property based on the agreed guaranteed price. If the property is eventually sold in the market place for an amount less than the guaranteed price, the employee will have received a benefit from having participated in the plan. However, in such a case, the value of that benefit is not considered taxable.
The Department's position regarding such situations is expressed in IT-470R at paragraph 37.
Roy C. Shultis
Interim Director General
Income Tax Ruling and
Interpretations Directorate
Policy and Legislation Branch
J. SZESZYCKI
957-2135
April 17, 1996
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© Her Majesty the Queen in Right of Canada, 1996
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© Sa Majesté la Reine du Chef du Canada, 1996
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