Cases
McNeeley v. Canada, 2021 FCA 218
The founding shareholder (Mr Baker) of a software company was one of the three trustees of a trust (the “D2L Employee Trust”) that was settled...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 4800.1 | prescribed trust was to be treated as an EBP and thus excluded from s. 107 rules | 283 |
| Tax Topics - Statutory Interpretation - Regulations/Statutory Delegation | principle that the Act must prevail over an overlapping Regulation | 243 |
MNR v. Chrysler Canada Ltd., 92 DTC 6346, [1992] 2 CTC 95 (FCTD)
After finding (below) that the Chrysler employee stock ownership plan was both an employee benefit plan and an agreement to issue shares to...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(28) | double taxation to trust and employee | 99 |
| Tax Topics - Income Tax Act - Section 7 - Subsection 7(2) | 41 | |
| Tax Topics - Statutory Interpretation - Specific v. General Provisions | 99 |
Re MNR and Chrysler Canada Ltd., 91 DTC 5526, [1991] 2 CTC 156 (FCTD)
Chrysler (U.S.) contributed treasury shares to a trust for the benefit of its employees and those of Chrysler Canada. Chrysler Canada reimbursed...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 7 - Subsection 7(2) | oral agreement | 178 |
See Also
McNeeley v. The Queen, 2020 TCC 90, aff'd 2021 FCA 218
The founding shareholder (Mr Baker) of a software company was one of the three trustees of a trust (the “Trust”) settled by his mother with...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 4800.1 | prescribed trust and EBP are mutually exclusive | 149 |
Louis-Phillipe Bédard v. Minister of National Revenue, 91 DTC 573, [1991] 1 CTC 2323 (TCC)
One-half of the $32,000 received by the taxpayer from his former employer following his dismissal represented compensation for the defamation...
James R. Crighton v. Minister of National Revenue, 91 DTC 511, [1991] 1 CTC 2318 (TCC)
Upon terminating the taxpayer's employment, his employer offered to pay him the sum of $150,000 "in whatever form you choose which best suits your...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Retiring Allowance | 107 |
Administrative Policy
15 June 2022 STEP Roundtable Q. 18, 2022-0924791C6 - McNeeley et al v. The Queen
When asked to comment on the McNeeley decision, CRA stated:
When contemplating the establishment of a trust which will acquire securities of an...
7 October 2021 APFF Roundtable Q. 1, 2021-0900891C6 F - Tax treatment of employee share trust
A discretionary trust for present and future employees of a company that had held shares of the company since January 1, 2021, will add Mr. X as a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 7 - Subsection 7(2) | s. 7(2) does not deem there to be an agreement to acquire shares | 384 |
1 August 2019 Internal T.I. 2018-0781951I7 - Employee benefit plan and recharge agreement
Parentco (apparently, a non-resident public company) funded and administered a performance share plan (“PSP”) for employees of group...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 7 - Subsection 7(3) - Paragraph 7(3)(b) | no s. 7(3)(b) prohibition where at employer’s option to settle PSPs in cash or in shares | 250 |
| Tax Topics - Income Tax Act - Section 7 - Subsection 7(1) - Paragraph 7(1)(a) | s. 7 rules do not apply to shares purchased through a trust | 180 |
| Tax Topics - Income Tax Act - Section 32.1 - Subsection 32.1(1) | payments made by Canco to parent for the value of parent shares distributed by parent-funded EBP to Canco employees were not deductible under s. 32.1 | 269 |
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose | recharge payments made for employees participating in parent-administered PSP not deductible to extent they were employed by affiliates during vesting period | 241 |
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) | request for deduction not to be allowed if based on case decision rather than error | 281 |
S2-F1-C1 - Health and Welfare Trusts
Overview
1.1 A health and welfare trust is not defined in the Act. In general terms, a health and welfare trust described in this Chapter is a...
2013 Ruling 2012-0470801R3 - Employee Benefit Plan - Redemption Window
RE "amendments is to permit a Participant to elect to redeem a portion of the Participant's Notional Units during a redemption window that may be...
23 February 1995 External T.I. 9425085 - FOREIGN PENSION TRANSFERS TO RRSPS
Where there is a transfer of funds from a U.K. pension to a registered pension plan, the transaction will not be a taxable event if (a) the...
23 January 1992 External T.I. 5-913366
Where a change in the trustees of an employee benefit plan was provided for in the terms of a grandfathered plan, a change of the trustees would...
21 October 1991 T.I. (Tax Window, No. 11, p. 5, ¶1532)
Where a corporation sells its business at a time when there is a surplus in its health and welfare trust, the funds should remain in the existing...
10 June 1991 T.I. (Tax Window, No. 4, p. 28, ¶1293)
An arrangement under which the employer pays an insurer in respect of legal services to be provided to its employees does not constitute an...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) | 42 |
12 January 1990 T.I. (June 1990 Access Letter, ¶1248)
The inclusion of a funeral expense benefit would result in an otherwise non-taxable plan becoming an employee benefit plan or employee trust.
Articles
Elizabeth Boyd, Jeremy J. Herbert, "Trusts Holding Shares For Employees", draft 2023 CTF Annual Conference paper
Use of phantom plans as EPBs (pp. 9 – 14)
- An employee benefit plan (EBP) can be used to acquire employer or parent company shares on the open...
Simon Thompson, "Canada's Income Tax Rules for Non-Registered Plans: Implications for Foreign Pensions", A Journal of International Taxation, Vol. 15, No. 10, October 2004, p. 34.
D. Bruce Ball, Brenda Dietric H., "Canadian Taxation of Foreign Pensions", Personal Tax Planning, 2000 Canadian Tax Journal, Vol. 48, No. 6, p. 1908.
Paragraph (d)
Administrative Policy
2 November 2009 External T.I. 2009-0308741E5 F - Fonds de formation
The collective agreement between the Corporation and the Union provided for the establishment and funding by the Corporation of a training fund...