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24 January 2005 External T.I. 2004-0099471E5 F- Convention de retraite pour un actionnaire-employé-- summary under Section 67 Summary Under Tax Topics- Income Tax Act- Section 67 81 Roundtable position on shareholder-manager compensation also applies to RCA contributions Are contributions by a corporation to an RCA deductible in computing its income where the contributions relate to services rendered by a shareholder-employee while self-employed and before the corporation’s incorporation? ...

2 February 2005 External T.I. 2004-0104671E5 F- Convention de retraite- Fonds mis de côté-- summary under Salary Deferral Arrangement Summary Under Tax Topics- Income Tax Act- Section 248- Subsection 248(1)- Salary Deferral Arrangement amounts agreed to be paid post-retirement do not create an SDA if they are not reasonably regarded as deferred salary In a general response to a query as to whether a special reserve fund that an employer creates by depositing money with a broker to provide for the payment of a portion of a pension payable for the retirement of a management employee will constitute a salary deferral arrangement or a retirement compensation arrangement, CRA stated: [W]here an employer agrees to pay amounts to an employee on or after retirement, and the amounts cannot reasonably be regarded as salary or wages that have been agreed to be deferred, the arrangement will generally not be regarded as a salary deferral arrangement. ...

2 February 2001 Internal T.I. 2000-0058127 F- Convention d'émission d'actions-- summary under Subsection 7(2) Summary Under Tax Topics- Income Tax Act- Section 7- Subsection 7(2) s. 7(2) could apply if shares were held by the employer for later acquisition by the employee In the course of a general discussion, the Directorate noted that the application of s. 7 was not restricted to stock options and that it could apply where the employer issued shares for no consideration as a gift or reward, and that where there was an agreement of the employer to hold shares in trust, conditionally or unconditionally, on behalf of an employee until certain conditions were satisfied, then pursuant to s. 7(2), the employee was deemed, for the purposes of ss. 7, 110(1)(d) and (d.1), to acquire the shares at the time the trust begins to hold the shares for the employee. ...

25 October 2000 External T.I. 2000-0017065 F- CONVENTION DE RETRAITE ET ASSURANCE-- summary under Subsection 207.6(2) Summary Under Tax Topics- Income Tax Act- Section 207.6- Subsection 207.6(2) no Pt. ...

20 August 2008 External T.I. 2008-0288561E5 F- Convention de partage d'une société de personnes-- summary under Subparagraph 53(2)(c)(v) Summary Under Tax Topics- Income Tax Act- Section 53- Subsection 53(2)- Paragraph 53(2)(c)- Subparagraph 53(2)(c)(v) payment to a retired partner in excess of partnership income is treated as a constructive withdrawal of capital by the other partners, reducing their ACB The partnership agreement for a services partnership provides that a partner who has withdrawn will be paid over five years an amount respecting work-in-progress and paid at a formula-based rate over five years, with the parties agreeing that such amounts are paid as income allocations under s. 96(1.1). ...

4 October 2010 External T.I. 2010-0367231E5 F- Convention de partage d'une société de personnes-- summary under Subsection 103(1.1) Summary Under Tax Topics- Income Tax Act- 101-110- Section 103- Subsection 103(1.1) s. 103(1) or (1.1) could apply to allocation of ordinary income and capital gains on substantially different basis between couple and their corporation A couple (Mr. and Mrs. ...

29 May 2007 Internal T.I. 2006-0217401I7 F- 110(1)d): Moment de la conclusion de la convention-- summary under Clause 110(1)(d)(ii)(A) Summary Under Tax Topics- Income Tax Act- 101-110- Section 110- Subsection 110(1)- Paragraph 110(1)(d)- Subparagraph 110(1)(d)(ii)- Clause 110(1)(d)(ii)(A) where options previously granted were not exercisable until an employer “Exercise Notice,” the stock option agreement was made at such notice time Employees of Opco (Participants”) were granted stock options by Opco pursuant to “Grant Agreements” which specified the number of Options granted and their exercise price (which equaled the FMV of the subject shares at the time of such grant), but provided that such Options were not exercisable (and could not be surrendered to Opco for their cash surrender value) until the compensation committee of Opco had issued an “Exercise Notice” to the Participant. ...

6 October 2006 Roundtable, 2006-0197151C6 F- Acquisition selon convention entre actionnaires-- summary under Paragraph 248(8)(a) Summary Under Tax Topics- Income Tax Act- Section 248- Subsection 248(8)- Paragraph 248(8)(a) children exercising right in shareholders’ agreement to acquire shares on father's death would not be a consequence of his death, cf. if pursuant to his will A shareholders' agreement gives children the right to acquire the shares of a farm corporation for $1 after their father's death. ...

4 January 2006 Internal T.I. 2005-0115801I7 F- Convention de retraite-- summary under Paragraph 20(1)(r) Summary Under Tax Topics- Income Tax Act- Section 20- Subsection 20(1)- Paragraph 20(1)(r) excessive benefits would have resulted in denial under ss. 18(1)(o.2) and 20(1)(r) had the arrangement qualified as an RCA A closely-held corporation that was dividending out all the profits of its business also established a purported retirement compensation arrangement (RCA) trust for two employees who, indirectly, were the corporation’s two shareholders, and made contributions to the trust that were funded by loans from the trust. ...

4 January 2006 Internal T.I. 2005-0115801I7 F- Convention de retraite-- summary under Section 67 Summary Under Tax Topics- Income Tax Act- Section 67 Petro-Canada applied re determining reasonableness A closely-held corporation that was dividending out all the profits of its business also established a purported retirement compensation arrangement (RCA) trust for two employees who, indirectly, were the corporation’s two shareholders, and made contributions to the trust that were funded by loans from the trust. ...