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23 February 2001 External T.I. 2001-0066265 F- Salaire différé français-- summary under Article 18 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 18 receipt of “deferred salary,” pursuant to a right established by French legislation, was not a pension given no previous employer-employee relationship A French citizen residing in Canada had helped to run the family farm in France and, to thank him for those seven years of contribution, his father paid him a lump sum as “deferred salary”, a concept introduced by the French legislature pursuant to a Decree for the purpose of equity, namely to compensate a person who had contributed without consideration to the enrichment of the family group and to reduce the overall cost of transferring ownership to the son or daughter who remained part of the parental estate. ...

However, CRA stated that there likely will be an SDA where the plan also provides that members can elect to reduce or forego future bonus entitlements and accrued vacation pay entitlements for additional allocations (of equal amounts) to the member’s account (to be paid out at the earliest of termination of employment, retirement or death) – stating that these additional features “appear to be primarily motivated by tax deferral considerations.” ...

24 January 2019 External T.I. 2016-0651291E5- Revised PHSP position- Self-insured plan-- summary under Private Health Services Plan Summary Under Tax Topics- Income Tax Act- Section 248- Subsection 248(1)- Private Health Services Plan measuring compliance with the 90% METC-eligible expense test For insured and self-insured private health services plans (PHSPs), what are the tax consequences if not all or substantially all of the actual amounts paid under the plan are for medical expenses that are eligible for the medical expense tax credit (METC) – and do different considerations apply to a self-insured health care spending accounts (HCSA) which sets a ceiling on the amounts that can be claimed under the plan? ...

A”) transferred his catering business to a newly incorporated corporation (“Opco”) in consideration for Opco preferred shares, with a family trust (“Trust”) subscribing for common shares. ...

CRA stated: Based on the fact that contributions were made to the SMSF by an employer of the taxpayer’s ex-husband in consideration for his employment services and that the sole purpose of the SMSF is to provide retirement benefits to its members, it is reasonable to conclude that the SMSF is a pension plan for purposes of the Act. ...

After referring to the employee benefit plan (“EBP”) definition in s. 248(1), CRA noted: Generally, a plan will be considered to be a pension plan (irrespective of whether it is registered under the Act) “where contributions have been made to the plan by or on behalf of an employer or former employer of an employee in consideration for services rendered by the employee and the contributions are used to provide an annuity or other periodic payment on or after the employee’s retirement.” ...

In some circumstances involving smaller FTS offerings, the Issuer may not retain an Underwriter (to whom it otherwise would have paid a fee in the range of 3 to 6% of the FTSs subscription price (an “Offering Assistance Fee”) to assist in finding Investors and, instead, the Promoter will provide such assistance in consideration for an Offering Assistance Fee. ...

[I]n the determination of the amount of the RCA advantage in each year…the cost of equivalent term-life insurance coverage based on insurance underwriting considerations such as the individual’s age, gender, and health would be a relevant factor. ...

CRA indicated that it was not prepared to extend its policy on farm-in arrangements to this situation (given that “carrying out the work on the claims does not give a right in the claims but potentially only an option to acquire them”), stating: Consequently … the amounts paid to carry out the work on the claims of Corporation B would be added to the cash payments provided for in the agreement and would be considered part of the overall consideration given by Corporation A to acquire a property. ...

In finding that RHCPs are self-employed rather than employees CRA first noted the Grimard decision, (2009 FCA 47), which referenced the primary test of subordination, but also stated: … In determining legal subordination, that is to say, the control over work that is required under Quebec civil law for a contract of employment to exist, a court does not err in taking into consideration as indicators of supervision the other criteria used under the common law, that is to say, the ownership of the tools, the chance of profit, the risk of loss, and integration into the business. ...