Subsection 110(0.1)
Specified Person
Articles
Paul Carenza, Chris D’Iorio, "Update on Equity-Based Compensation in Canada: Market Trends and Technical Developments", draft 2021 Conference Report paper (Canadian Tax Foundation)
Non-consolidation where the qualifying person is a portfolio investment (pp. 7-8)
- Since, under GAAP, “investment entities” are required to...
Vesting Year
Articles
Joint Committee, "Employee Stock Option Amendments", 3 September 2019 Joint Committee Letter
- Para. (a) of the vesting year definition should refer to an event the timing of which is not reasonably foreseeable.
- Para. (b) of the vesting...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 110 - Subsection 110(1) - Paragraph 110(1)(e) | effective date/different employer and issuer/successor rules | 136 |
| Tax Topics - Income Tax Act - Section 110 - Subsection 110(1.31) | exclude non-qualified securities/exclusion of under-water securities or where options cancelled | 165 |
| Tax Topics - Income Tax Act - Section 110 - Subsection 110(1.9) | same-day notice requirement - impracticable | 28 |
Subsection 110(1) - Deductions permitted
Paragraph 110(1)(d) - Employee options
See Also
McAnulty v. The Queen, 2001 DTC 942 (TCC)
The time at which the taxpayer's employer agreed to issue shares to her was the time at which the president called her to his desk and told her...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Effective Date | stock option agreement effective time of oral agreement (not yet ratified by board) | 147 |
Bernier v. The Queen, 97 DTC 317, [1997] 1 CTC 2028 (TCC)
The taxpayer's employer issued employee stock options to the taxpayer and others. Later in the same year, the Quebec Securities Commission...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Illegality | 125 |
Amirault v. MNR, 90 DTC 1330, [1990] 1 CTC 2432 (TCC)
The taxpayer originally was granted options to acquire shares of his employer at an exercise price equal to 90% of the market price of the shares...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Effective Date | retroactive amendment to option price accepted | 41 |
Administrative Policy
15 June 2022 STEP Roundtable Q. 17, 2022-0929511C6 - Deceased Taxpayer and Stock Options
Although 2009-0327221I7 and 2011-0423441E5 indicated that the 50% deduction under s. 110(1)(d) is not permitted to a deceased taxpayer, s....
2005 Ruling 2005-0120771R3 - Stock option plan
The two equal partners (“PartnerCo1” and “PartnerCo2”) of “Partnership” subscribe for voting redeemable retractable preferred shares...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 7 - Subsection 7(3) - Paragraph 7(3)(b) | full deductibility of cash surrender payment made on surrender of options granted on common shares tracking appreciation in partnership interest | 204 |
19 September 2016 Internal T.I. 2016-0641841I7 - Employee stock option rules
CRA first stated that Placer Dome, Chrysler and McAnulty “stand for the proposition that an arrangement to issue or sell shares need not be a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 7 - Subsection 7(3) - Paragraph 7(3)(b) | discretionary share bonus plans have no s. 7 agreement unless there is delayed vesting | 371 |
| Tax Topics - Income Tax Act - Section 7 - Subsection 7(2) | no agreement if allocation of shares in trustee's discretion | 284 |
3 August 2016 External T.I. 2015-0572381E5 - Employee Stock Option-CCPC Shares
A Canadian-controlled private corporation issues treasury shares to the employee holder of a stock option (with a fair market value exercise...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 7 - Subsection 7(1) - Paragraph 7(1)(b) | s. 7(1)(a) inapplicable where shares issued equal to in-the-money value | 91 |
| Tax Topics - Income Tax Act - Section 110 - Subsection 110(1) - Paragraph 110(1)(d.1) | not available where share payment of in-the-money value | 67 |
21 December 2012 Internal T.I. 2009-0327221I7 - Paragraph 7(1)(e) - Death of a Taxpayer
In response to a question regarding an employer's reporting requirements where a deceased employee was deemed to have disposed of unexercised...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 164 - Subsection 164(6.1) | 223 | |
| Tax Topics - Income Tax Act - Section 164 - Subsection 164(6.4) | 99 | |
| Tax Topics - Income Tax Act - Section 54 - Capital Property | 105 | |
| Tax Topics - Income Tax Act - Section 69 - Subsection 69(1) - Paragraph 69(1)(c) | FMV basis for stock options received by estate | 105 |
| Tax Topics - Income Tax Act - Section 7 - Subsection 7(1) - Paragraph 7(1)(e) | 99 |
Income Tax Technical News No. 19, 16 June 2000
"... Where an employee disposes of his or her rights under a securities option agreement in exchange for shares of the capital stock of the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 7 - Subsection 7(1) - Paragraph 7(1)(b) | 40 | |
| Tax Topics - Income Tax Act - Section 7 - Subsection 7(1.3) | 12 |
2004 Ruling 2004-0073821R3 - Stock Option Plan Amendment - SAR
An employee stock option plan is amended by providing that each of the existing options will have an associated SAR added which entitles the...
8 March 2001 External T.I. 2001-0070445 - Stock options exercised by a corporation
Where an employee has transferred employee stock options to a controlled corporation, the deduction under s. 110(1)(d) may not be available to the...
15 October 1997 External T.I. 9725315 - CCPC OPTIONS
Although a reduction in the exercise price for an employee stock option would not give rise to a disposition of the option, such reduction would...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 47 - Subsection 47(1) | 8 | |
| Tax Topics - Income Tax Act - Section 7 - Subsection 7(1.3) | 67 |
28 April 1995 T.I. 9850344
(See also 21 October 1996 T.I. 5-963321.)
Where an annuitant transfers an employee stock option having an accrued gain to his RRSP with the RRSP...
May 1995 Executive Institute Revenue Canada Round Table, Q. 24 (C.T.O "Employee Stock Option")
A deduction under s. 110(1)(d) may be deducted from a benefit included in income under s. 7(1)(e).
11 June 1993 T.I. (Tax Window, No. 31, p. 10, ¶2519)
Where an employee surrenders her rights under a phantom stock plan and receives an option to acquire shares in the employer company with an...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) | 85 | |
| Tax Topics - Income Tax Act - Section 7 - Subsection 7(1) - Paragraph 7(1)(a) | 103 |
13 January 1993 External T.I. 5-923395
RC does not as a general rule express an opinion on the reasonableness of a method proposed to be used in arriving at the fair market value of a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 110 - Subsection 110(1.5) | 87 |
92 C.R. - Q.46
Where a Canadian employee participates in a stock option plan where the relevant amounts are denominated in U.S. dollars, the requirements of s....
4 May 1992 Tax Executive's Round Table, Question 10 (December 1992 Access Letter, p. 48)
Where the provisions of s. 110(1)(d) otherwise are met, an employee will be entitled to the deduction in respect of cash payments received by the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 7 - Subsection 7(3) - Paragraph 7(3)(b) | 35 |
5 March 1991 T.I. (Tax Window, No. 2, p. 19, ¶1184)
For the purposes of determining the fair market value of the share, RC will not permit the deduction of a discount to reflect savings resulting...
8 September 89 Memorandum (February 1990 Access Letter, ¶1114)
An option to acquire shares of a U.S. corporation with an exercise price expressed in U.S. dollars will cease to qualify if the Canadian dollar...
87 C.R. - Q.22
The expression "at the time the agreement was made" in s. 110(1)(d)(iii) refers to the date on which an option to acquire a specific number of...
Articles
Joint Committee, "Stock Option Changes Announced in 2019 Federal Budget", 14 May 2019 Submission of Joint Committee
The Joint Committee has provided comments on the 2019 Budget proposals to align Canada’s employee stock option rules with those in the U.S....
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 7 - Subsection 7(3) - Paragraph 7(3)(b) | submission re confirmation of employer deductibility where full employee benefit | 269 |
Colin Smith, "Re-pricing Employee Stock Options", Taxation of Executive Compensation and Retirement, December/January 2002, p. 63.
Eva Krasa, "Participation by Canadian Employees in U.S. Stock Option Plans: Some Issues", Taxation of Executive Compensation and Retirement, Vol. 12, No. 9, May 2001, p. 429
Includes a list of features of U.S. plans that may be problematic for the deduction.
Julie Y. Lee, "Attracting and Retaining Executives and Employees With Tax-Efficient Incentives", Canadian Petroleum Tax Journal, Vol. 14, No. 1, 2001
Includes discussion of tandem share appreciation rights.
Michael F.T. Addison, Gil J. Korn, "Employee Stock Options: An Up-Date", Personal Tax Planning, 2000 Canadian Tax Journal, Vol, 48, No. 3, p. 778.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 7 - Subsection 7(1) - Paragraph 7(1)(a) | 0 |
Subparagraph 110(1)(d)(ii)
Administrative Policy
31 May 2004 Internal T.I. 2004-0077341I7 F - Déduction de 110(1)d) de la Loi
Before going on to find that the s. 110(1)(d) deduction was not available where the employee was entitled to a discount in purchasing shares of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Fair Market Value - Shares | market price is a prima facie indication of share FMV | 74 |
Clause 110(1)(d)(ii)(A)
Administrative Policy
29 May 2007 Internal T.I. 2006-0217401I7 F - 110(1)d): Moment de la conclusion de la convention
Employees of Opco (Participants”) were granted stock options by Opco pursuant to “Grant Agreements” which specified the number of Options...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 7 - Subsection 7(5) | not giving exercise notice to employees who are not shareholders (so that they cannot exercise their options) may engage s. 7(5) | 271 |
Articles
Peter Lee, Paul Stepak, "PE Investments in Canadian Companies", draft 2017 CTF Annual Conference paper
Difficulty of determining FMV of management’s optioned shares where they rank lower in the waterfall (pp.20-21)
[S]tock options are typically...
Paragraph 110(1)(d.01)
Administrative Policy
7 October 2020 APFF Financial Strategies and Instruments Roundtable Q. 6, 2020-0851631C6 F - Options d’achat d’actions - disposition au décès
Can the s. 110(1)(d.01) deduction be made from a benefit deemed to have been received by a deceased employee under s. 7(1)(e) where, following the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 7 - Subsection 7(1) - Paragraph 7(1)(e) | s. 110(1)(d.01) gift deduction is unavailable against a s. 7(1)(e) stock option benefit | 81 |
7 October 2011 Roundtable, 2011-0407951C6 F - Options, don d'actions
Where a private corporation issues stock options to its employees, which are "in the money" at the time of issuance, and it subsequently becomes a...
8 October 2010 Roundtable, 2010-0370481C6 F - Don, vente d'actions acquises en vertu 7(1)
Where there is a gift of the proceeds from a short sale of optioned shares on the same day as the option is exercised in a cashless exercise, the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 110 - Subsection 110(2.1) | donation funded with proceeds of short hedge put on immediately on s. 7 exercise does not qualify | 136 |
8 October 2010 Roundtable, 2010-0370501C6 F - Options, don, coût moyen, PBR
Options are exercised and the shares donated to a charity within 30 days. After noting that a taxpayer who does not make the s. 7(1.31)...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 7 - Subsection 7(1.31) | taxpayer who does not make the s. 7(1.31) identification is subject to s. 7(1.3) | 146 |
Paragraph 110(1)(d.1)
Administrative Policy
3 August 2016 External T.I. 2015-0572381E5 - Employee Stock Option-CCPC Shares
A Canadian-controlled private corporation issues treasury shares to the employee holder of a stock option (with a fair market value exercise...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 7 - Subsection 7(1) - Paragraph 7(1)(b) | s. 7(1)(a) inapplicable where shares issued equal to in-the-money value | 91 |
| Tax Topics - Income Tax Act - Section 110 - Subsection 110(1) - Paragraph 110(1)(d) | no 110(1)(d) where share payment of in-the-money value | 116 |
31 August 2000 External T.I. 2000-0032525 - Exchanged CCPC option, 110(1)(d.1)
Contrary to the earlier position in an 18 October 1999 TI (No. 991926), the Agency now is of the view "that paragraph 110(1)(d.1) of the Act could...
Paragraph 110(1)(e)
Articles
Amelie Desrocher, Chris D’Iorio, Alison Lantos, Fola Ogunamkin, Serena Hou, "Unlocking Value: Corporate Tax Deductions and Share-Based Compensation Strategies", Draft 2024 CTF Annual Conference paper
Recharge agreement not required for s. 110(1)(e) deduction (p. 10)
- The amount of the s. 110(1)(e) deduction is equal to the benefit deemed to...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 7 - Subsection 7(3) - Paragraph 7(3)(b) | 442 | |
| Tax Topics - Income Tax Act - Section 7 - Subsection 7(1) - Paragraph 7(1)(b.1) | 52 |
Paul Carenza, Chris D’Iorio, "Update on Equity-Based Compensation in Canada: Market Trends and Technical Developments", draft 2021 Conference Report paper (Canadian Tax Foundation)
Issues respecting availability of the s. 110(1)(e) deduction (pp. 13-15)
- In order for a s. 110(1)(e) deduction to be available to the employer...
Joint Committee, "Employee Stock Option Amendments", 3 September 2019 Joint Committee Letter
- Both (i) the denial of the s. 110(1)(d) deduction for benefits respecting “non-qualified securities” and (ii) the granting of a corresponding...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 110 - Subsection 110(0.1) - Vesting Year | reference to reasonably foreseeable timing/pro rata vesting | 54 |
| Tax Topics - Income Tax Act - Section 110 - Subsection 110(1.31) | exclude non-qualified securities/exclusion of under-water securities or where options cancelled | 165 |
| Tax Topics - Income Tax Act - Section 110 - Subsection 110(1.9) | same-day notice requirement - impracticable | 28 |
Paragraph 110(1)(f) - Deductions for payments
See Also
Whitney v. The Queen, 2001 DTC 423 (TCC)
Although the taxpayer's employer (the New Brunswick provincial government) was a self-insured employer for workers compensation purposes, the...
Administrative Policy
3 March 2011 Internal T.I. 2010-0387281I7 F - Déduction - personnel des Forces canadiennes
In response to a query as to whether the taxpayer is considered a member of the Canadian Forces and if the missions in which the taxpayer has...
Subparagraph 110(1)(f)(i)
Administrative Policy
16 May 2016 External T.I. 2015-0571591E5 - Employees Provident Fund of Malaysia
In connection with the possibility that the a lump sum payment received by a recent Canadian resident out of a Malaysian pension plan (namely, the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Superannuation or Pension Benefit | pension plan characteristics | 168 |
| Tax Topics - Income Tax Act - Section 60 - Paragraph 60(j) | paraphrase | 57 |
30 October 2014 External T.I. 2013-0500491E5 - Pension from XXXXXXXXXX
Tax is withheld by the European Union on a pension received by a Canadian resident from an EU organization and which is exempt from national tax...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 126 - Subsection 126(1) | EU withholding does not qualify as state tax | 124 |
| Tax Topics - Income Tax Act - Section 126 - Subsection 126(3) | pension income not employment income | 76 |
30 January 2013 External T.I. 2012-0449621E5 F - Belgian pension
Belgian social security payment received by Canadan resident , which were exempt under the Canada-Belgian Convnetion, were required to be included...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Treaties - Income Tax Conventions - Article 18 | Belgian social security payment received by Canadan resident must be included in the personal return, but with offsetting s 110(1)(f)(i) deduction claimed | 148 |
Subparagraph 110(1)(f)(ii)
Administrative Policy
22 February 2012 External T.I. 2011-0421671E5 F - Loss of retirement income benefit - death
An injured worker was entitled to receive monthly payments from the Ontario Workplace Safety and Insurance Board ("WSIB") until 65, with a lump...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(v) | inclusion under s. 56(1)(v), offsetting deduction under s. 110(1)(f)(ii), for Ontario WSIB lump sum on death | 48 |
11 October 1991 and 21 January 1992 T.I. (Tax Window, No. 11, p. 18, ¶1519)
A New Brunswick worker who (following the payment of worker's compensation benefits for 24 consecutive months) has an amount equal to 80% of the...
Subparagraph 110(1)(f)(iii)
See Also
Lapierre v. The Queen, 2019 TCC 18
A Canadian resident, who was an employee of the International Security Assistance Force (ISAF) in Afghanistan serving as an international civilian...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 8900 - Subsection 8900(1) - Paragraph 8900(1)(b) | UN-authorized agency was not a UN agency | 131 |
| Tax Topics - Income Tax Act - Section 81 - Subsection 81(1) - Paragraph 81(1)(a) | agency was not a NATO subsidiary non-military body | 152 |
Administrative Policy
3 March 2005 External T.I. 2004-0096371E5 F - Revenu tiré d'un emploi et 110(1)f)(iii)
CRA indicated that the determination of whether the income was from employment or self-employment (a business) was to be made in accordance with...
15 February 2000 Internal T.I. 2000-0004537 F - UNDP ORGANISATION INT'LE VISEE x REGL
The United Nations Development Program (UNDP) is a program under the authority of the UNDP Executive Board, which is itself under the authority of...
Paragraph 110(1)(j) - Home relocation loan
Administrative Policy
25 May 1994 Internal T.I. 9410817 - HOME RELOCATION LOANS
Where an employee in receipt of a home relocation loan is transferred again and pays off the first loan, and receives another loan which will...
27 July 1989 T.I. (Dec. 89 Access Letter, ¶1049)
An employee is entitled to a deduction for a reimbursement by the employer of interest cost on a loan or mortgage taken out from a related party...
Subsection 110(1.1) - Election by particular qualifying person
Administrative Policy
21 November 2017 CTF Roundtable Q. 9, 2017-0724191C6 - Stock Option Deduction
Where the employer files a valid election under s. 110(1.1), is the stock option deduction still available where the employee was issued treasury...
18 August 2017 External T.I. 2016-0672931E5 - Election
A stock option plan also includes a cashless exercise provision that permits an employee to elect, in lieu of paying the exercise price and...
7 December 2015 External T.I. 2015-0585171E5 F - 7(1)(b) benefit and 110(1.1) election
On the acquisition of all the shares of a CCPC (the “Corporation”) by an arm’s length third party, it also acquired all of the stock options...
4 May 2015 External T.I. 2013-0484181E5 - 7(1)(e) benefit and 110(1.1) election
Can an employer make the s. 110(1.1) election where s. 7(1)(e) deems a deceased employee to have received an employment benefit in the year of...
11 December 2012 External T.I. 2011-0423441E5 F - Options d'achat d'actions et décès
In response to a question on the consequences when a deceased individual owned options to acquire the shares of a public company, CRA stated...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 69 - Subsection 69(1) - Paragraph 69(1)(c) | cost to estate of employee stock options determined under s. 69(1)(c) | 96 |
Articles
Paul Carenza, Chris D’Iorio, "Update on Equity-Based Compensation in Canada: Market Trends and Technical Developments", draft 2021 Conference Report paper (Canadian Tax Foundation)
Ability to forego a corporate tax deduction on less than all the rights (pp. 12-13)
- S. 110(1.1) has been amended to replace the reference to...
Subsection 110(1.3)
Articles
Paul Carenza, Chris D’Iorio, "Update on Equity-Based Compensation in Canada: Market Trends and Technical Developments", draft 2021 Conference Report paper (Canadian Tax Foundation)
Potential to free-up annual limit room through exchange of underwater options (pp. 15-16)
- If, for example, in 2022, an option agreement, that had...
Subsection 110(1.31)
Administrative Policy
17 May 2022 IFA Roundtable Q. 11, 2022-0926411C6
The new non-qualified securities rules regarding specified persons (generally, large non-CCPCs) make the employee deduction under s. 110(1)(d)...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 110 - Subsection 110(1.4) | requirement to issue s. 110(1.9) notice to employees re RSUs could be avoided by designating them as non-qualified securities under s. 110(1.4) | 357 |
Articles
Joint Committee, "Employee Stock Option Amendments", 3 September 2019 Joint Committee Letter
- It is inappropriate for D(ii) of the formula to include the FMV of securities to be issued under earlier options where they were non-qualified...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 110 - Subsection 110(1) - Paragraph 110(1)(e) | effective date/different employer and issuer/successor rules | 136 |
| Tax Topics - Income Tax Act - Section 110 - Subsection 110(0.1) - Vesting Year | reference to reasonably foreseeable timing/pro rata vesting | 54 |
| Tax Topics - Income Tax Act - Section 110 - Subsection 110(1.9) | same-day notice requirement - impracticable | 28 |
Subsection 110(1.4) - Replacement of home relocation loan
Administrative Policy
17 May 2022 IFA Roundtable Q. 11, 2022-0926411C6
S. 110(1.9) requires the employer to notify CRA where it has agreed to issue a non-qualified security, s. 110(1)(e)(vi) provides that...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 110 - Subsection 110(1.31) | the non-qualified securities rules are being reviewed by Finance respecting options such as RSUs that can never generate a s. 110(1)(d) deduction | 285 |
27 July 1989 T.I. (Dec. 89 A.L.)
S.110(1.4) permits a taxpayer to replace a home relocation loan with a new loan, but prohibits him from extending the five-year period in which...
Subsection 110(1.42)
Articles
Paul Carenza, Chris D’Iorio, "Update on Equity-Based Compensation in Canada: Market Trends and Technical Developments", draft 2021 Conference Report paper (Canadian Tax Foundation)
Limited scope of ordering mechanism (p. 10)
- The only ordering that occurs under s. 110(1.31) is ensuring that all other grants contemporaneous...
Subsection 110(1.44)
Articles
Paul Carenza, Chris D’Iorio, "Update on Equity-Based Compensation in Canada: Market Trends and Technical Developments", draft 2021 Conference Report paper (Canadian Tax Foundation)
No s. 110(1.1) election necessary where s. 110(1.44) applies
- Since s. 110(1.44) is intended to have the same effect (of making a deduction...
Subsection 110(1.5) - Determination of amounts relating to employee security options
Administrative Policy
13 January 1993 External T.I. 5-923395
"it is our view that where a corporation's existing capital structure provides for it, the issuance of additional shares by the corporation would...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 110 - Subsection 110(1) - Paragraph 110(1)(d) | 61 |
Paragraph 110(1.5)(a)
See Also
Ferlaino v. The Queen, 2016 TCC 105 (Informal Procedure)
Smith J rejected arguments of the taxpayer that the computation of his s. 7(1)(a) benefits on exercising options on the shares of the listed U.S....
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 7 - Subsection 7(1) - Paragraph 7(1)(a) | exercise price of employee stock options to be translated at the exercise-date spot rate | 215 |
| Tax Topics - Income Tax Act - Section 261 - Subsection 261(2) | exercise price of employee stock options to be translated at the exercise-date spot rate | 115 |
Subsection 110(1.8) - Conditions for subsection (1.7) to apply
Articles
Dov Begun, "Equity Based Compensation and Stock Options", 2017 Annual CTF Conference draft paper
Retaining s. 110(1)(d) deduction following exercise price reduction (p. 15)
The paragraph 110(1)(d) deduction can also be preserved if, rather...
Steve Suarez, Firoz Ahmed, "Public Company Non-Butterfly Spinouts", 2003 Conference Report, c. 32.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 55 - Subsection 55(2) | 0 | |
| Tax Topics - Income Tax Act - Section 84 - Subsection 84(2) | 0 |
Subsection 110(1.9)
Articles
Paul Carenza, Chris D’Iorio, "Update on Equity-Based Compensation in Canada: Market Trends and Technical Developments", draft 2021 Conference Report paper (Canadian Tax Foundation)
Notice where employer is not the plan administrator (p. 13)
- No specific form of notice is prescribed.
- In the common situation where the Canadian...
Joint Committee, "Employee Stock Option Amendments", 3 September 2019 Joint Committee Letter
- Requiring same-day written notification (in para. (a)) can be impracticable – at least 30 days should be allowed.
- Re para. (b), non-residents...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 110 - Subsection 110(1) - Paragraph 110(1)(e) | effective date/different employer and issuer/successor rules | 136 |
| Tax Topics - Income Tax Act - Section 110 - Subsection 110(0.1) - Vesting Year | reference to reasonably foreseeable timing/pro rata vesting | 54 |
| Tax Topics - Income Tax Act - Section 110 - Subsection 110(1.31) | exclude non-qualified securities/exclusion of under-water securities or where options cancelled | 165 |
Subsection 110(2) - Charitable gifts
Cases
Aubry v. The Queen, 76 DTC 6343, [1976] CTC 598 (FCTD)
A member of the Society of Jesus who had taken the vow of poverty was not entitled to the deduction because he paid some of his expenses directly...
Administrative Policy
11 July 1991 T.I. (Tax Window, No. 6, p. 13, ¶1348)
RC will allow a taxable benefit under s. 6(1)(a) to be deducted under s. 110(2).
IT-86R "Vow of Perpetual Poverty".
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 118.1 - Subsection 118.1(1) - Total Charitable Gifts | 67 |
Articles
Strain, "Capital Gains Exemption: To Crystallize or not to Crystallize - Emerging Income Tax Issues", 1991 Conference Report, p. 8:7.
Subsection 110(2.1) - Charitable donation — proceeds of disposition of employee option securities
Administrative Policy
6 December 2016 External T.I. 2015-0605971E5 - Paragraph 110(1)(d.01) deduction
Would a taxpayer be entitled to the s. 110(1)(d.01) deduction by virtue of s. 110(2.1) if he directed the approved broker to dispose of his shares...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 7 - Subsection 7(1.31) | s. 7(1.31) election also effective where a broker sale under s. 110(2.1) | 155 |
8 October 2010 Roundtable, 2010-0370481C6 F - Don, vente d'actions acquises en vertu 7(1)
An investor short sells the same number of shares as those exercised on the same day as the exercise of the s. 7 options, and donates the proceeds...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 110 - Subsection 110(1) - Paragraph 110(1)(d.01) | cashless exercise does not satisfy ss. 110(2.1) and 110(1)(d.01) | 44 |
Articles
Maureen Y. Berry, "Properly Structured Charitable Donations May Mitigate Source Deduction Woes", Taxation of Executive Compensation and Retirement, 2011, p. 1367
There is a source deduction advantage to a broker-directed donation of the proceeds received upon the disposition of optioned securities as...