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Schwartz v. Canada, 96 DTC 6103, [1996] 1 SCR 254

An individual who had entered into a contract of employment was not, at that time, an employee because under the definition, an individual does not become an employee until "he or she becomes under obligation to provide services under the terms of the contract".

Scott v. The Queen, 94 DTC 6193, [1994] 1 CTC 330 (FCA)

The taxpayer, who was the Director and Secretary-Treasurer of a public corporation ("Night Hawk") and whose work as corporate secretary (for which he received no remuneration) of advising directors of meetings, taking minutes and preparing directors resolutions etc. was the usual work of a corporate secretary, was issued stock options by Night Hawk and exercised them at a gain.

As he was an officer of Night Hawk and "an officer of a corporation is an employee of that corporation and necessarily has an employment relationship with the corporation", it followed that he was an employee and in an employment relationship with Night Hawk, so that s. 7(1)(a) applied to the exercise by him of the stock options.

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 7 - Subsection 7(5) 222

The Queen v. Kuhl, 74 DTC 6024, [1973] CTC 846 (FCTD)

"The definition of employment ... clearly requires a master and servant relationship."

See Also

Blaker v. The Queen, 93 DTC 1025, [1994] 1 CTC 2242 (TCC)

A lump sum of $90,000 received by the taxpayer in consideration for his resignation from a governor-in-council appointment to the National Parole Board constituted a retiring allowance. Mogan TCJ. stated (p. 1027) that he could "find nothing that would make an appointment by the Governor-in-Council different from an office or employment in any other sense."