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In our view, the substitution of the phantom stock plan units for the stock options would be considered a disposition of property and the value of the units would be included in the employees' income to the extent that any amount was not included in the income in the previous years. It is our view that the amount included in the employees' income would be considered as an amount paid by the employees to acquire the right to acquire the shares for the purposes of subsection 7(1) and subparagraph 110(1)(d)(iii) of the Act. ...

Where an employer acquires an interest in a life insurance policy that may reasonably be considered to be acquired to fund benefits to be received by an employee upon his retirement or upon substantial change in services rendered, the arrangement would be subject to the retirement compensation arrangement ("RCA") rules by virtue of subsection 207.6(2) of the Act if it is not otherwise a RCA and is not otherwise excluded from the definition of RCA by any of paragraphs (a) to (l) and (n) thereof. All the facts of a particular situation would have to be considered to determine whether the RCA rules apply or not. ...

Spice (613) 957-8953 Attention: XXXXXXXXXX July 23, 1993 Dear Sirs: Re: Employer Purchase of Pre-1990 Past Service Pension Benefits This is in reply to your facsimile transmission of July 16, 1993, in which you ask whether an employer contribution to a registered pension plan will be considered a taxable benefit to the employee or if it would be excluded pursuant to paragraph 6(1)(a) of the Income Tax Act (the "Act"). ... Past service contributions made by the employer in respect of the employer's obligations to the plan in respect of the employee will not be considered a benefit to be included in the employee's income pursuant to paragraph 6(1)(a) of the Act. ...

This was being considered because, although the capital gains deduction eliminates any income tax with respect to the license buy-back in most cases, it does not reduce the income inclusion's impact on eligibility for the GIS. ... An exception did occur in the late 1970's, when grants received to cancel lobster fishing licenses were considered to have no tax consequences. ...

Accordingly, an amount received by the employee on account of his "retirement" would not be considered a retiring allowance. Where, however, a long-term employee has retired without any assurance at the time of retirement of being rehired by his former employer, and receives an amount from his employer in recognition of long service, such an amount would be considered a retiring allowance regardless of the fact that the employee might be rehired at a later date when circumstances have changed. ...

It is generally considered, however, that custody continues until the child reaches the age of majority. The Department takes the position that, in the absence of evidence to the contrary, a child who has reached the age of 18 cannot be considered to be in the custody of a parent even though s/he may continue to be residing with the parent. ...

Factors to be considered would include the location of the books and records, where the Directors meet, where day-to-day management and control is exercised, where major business transactions are carried out, where employees report for work or are hired or are paid from, and where one would sue if legal action were being contemplated. If the head office of XXXXXXXXXX employer met most of the criteria set out above in 1990 it will likely be considered that control and management was exercised there and that the business was in fact resident on a reserve. ...

We confirmed with the Registered Plans Division that the amounts paid into the XXXXXXXXXX pension plan represent deferred compensation and are not considered employee contributions to the plan. Therefore, the amounts when paid to the employer (XXXXXXXXXX) are considered a benefit to the employer under a pension plan pursuant to paragraph 56(1)(a) of the Income Tax Act (the "Act"); when paid to the employees in the following described situations by the employer they are taxable as noted below: 1.      ...

Section 256 of the Act establishes certain rules for determining whether corporations are to be considered associated for purposes of the Act. ... We are of the view that the application of the provisions of subparagraph 256(1.2)(f)(ii) of the Act and subsection 256(1.3) of the Act would be considered from the point of view of each of the beneficiaries, on a person by person basis, with the result that the shares of the corporation would not be "double-counted" in any particular situation. ...

It is the Department's position that it is the fair market value of the letter of credit acquired by an employer and transferred to an RCA trustee for the benefit of an employee or employees which would be considered as a contribution by the employer to an RCA and which would be subject to the refundable tax under Part XI.3 of the Income Tax Act at the time of the contribution. ... The Department would become involved only after the fact and only if it considered the value assigned to a property to be unreasonable in the circumstances. ...