Cases
Freitas v. The Queen, 2017 TCC 46 (Informal Procedure), rev'd in part 2018 FCA 110
The taxpayer, who retired as a partner of Deloitte & Touche LLP in 2007, received a share of the partnership income in his 2008 taxation year...
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| Tax Topics - Other Legislation/Constitution - Federal - Canada Pension Plan - Section 14 | ITA s. 96(1.1) allocation of professional income was included | 121 |
Forest v. Canada, 2008 DTC 6506, 2007 FCA 362
The Court varied a finding of the Tax Court Judge that the full $152,969 received by the taxpayer was a retiring allowance and instead found that...
Schwartz v. Canada, 96 DTC 6103, [1996] 1 SCR 254
The taxpayer received $400,000 in settlement of his claim for damages following the repudiation by a company ("Dynacare") of its agreement to...
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| Tax Topics - Income Tax Act - Section 180 - Subsection 180(3) | no deference to FCA factual findings | 95 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Employment | 46 | |
| Tax Topics - Income Tax Act - Section 3 - Paragraph 3(a) - Business Source/Reasonable Expectation of Profit | 53 | |
| Tax Topics - Income Tax Act - Section 3 - Paragraph 3(a) | quaere whether income can be from a non-enumerated source | 39 |
| Tax Topics - Income Tax Act - Section 5 - Subsection 5(1) | 83 | |
| Tax Topics - Income Tax Act - Section 68 | 95 | |
| Tax Topics - Statutory Interpretation - Comparison of Provisions | presumption of consistent expression within same statute | 73 |
| Tax Topics - Statutory Interpretation - Specific v. General Provisions | specific statutory rule should not be undercut by a more general rule | 76 |
Merrins v. The Queen, 94 DTC 6669, [1995] 1 CTC 111 (FCTD)
The taxpayer was unsuccessful in his argument that $60,000 paid to him pursuant to an award of an arbitrator and following the filing of a...
The Queen v. Albino, 94 DTC 6071, [1994] 1 CTC 205 (FCTD)
In 1973, the taxpayer agreed to participate in an "incentive performance plan" of his employer under which the taxpayer was granted "share...
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| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(j.1) | 144 | |
| Tax Topics - Statutory Interpretation - Specific v. General Provisions | 57 |
J.A. Michel Paquin v. Her Majesty The Queen, 90 DTC 6663, [1991] 1 CTC 95 (FCTD)
On October 23, 1978 it was agreed that the taxpayer's employment would terminate effective December 31, 1978. This latter date was the effective...
Lorenzen v. The Queen, 81 DTC 5251, [1981] CTC 377 (FCTD)
The taxpayer arranged for the transfer of the assets of one company to a second company that was also controlled by him. Although the taxpayer was...
Girouard v. The Queen, 80 DTC 6205, [1980] CTC 284 (FCA)
Amounts paid pursuant to a liquidated damages clause in an employment contract in respect of loss of employment were found to have the same...
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| Tax Topics - Income Tax Act - Section 6 - Subsection 6(3) - Paragraph 6(3)(e) | 121 |
Choquette v. The Queen, 74 DTC 6563, [1974] CTC 742 (FCTD)
Before finding that an amount received by the taxpayer did not qualify as a retiring allowance under the definition in the pre-1972 Act (and after...
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| Tax Topics - General Concepts - Substance | 91 | |
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(3) - Paragraph 6(3)(d) | 76 |
See Also
Nadeau v. Agence du revenu du Québec, 2021 QCCQ 4638
The Superior Court of Quebec found: that the two taxpayers, who were minority shareholders, employees and directors of a private family...
Moorthy v Revenue and Customs, [2018] EWCA Civ 847
Following a restructuring of his employer, the taxpayer was made redundant and terminated in 2010. Following a mediation, the taxpayer settled his...
Abenaim v. The Queen, 2017 TCC 223
The taxpayer’s company for selling and leasing office equipment was merged in 1986 with a Minolta company to form Minolta Montreal, with 24% of...
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| Tax Topics - Income Tax Act - Section 3 - Paragraph 3(a) - Business Source/Reasonable Expectation of Profit | oppression damages were non-taxable | 109 |
Girard v. Agence du revenu du Québec, 2017 QCCQ 3245
The Québec government decree that some municipalities were to be amalgamated to form the Ville de Saguenay (the “City”) also stipulated that...
Robinson v. Québec (Sous-ministre du Revenu), 2010 QCCQ 6481
The taxpayer, who had for a long time been providing his legal services as independent contractor to the City of Gatineau, became an employee of...
Saardi v. R., 99 DTC 767, [1999] 4 CTC 2488 (TCC)
A lump sum of Cdn.$50,000 that the taxpayer received from his former U.S. employer was found to have been received not from his loss of employment...
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| Tax Topics - Income Tax Act - Section 5 - Subsection 5(1) | 50 |
Tremblay v. The Queen, 2009 DTC 1558, 2009 TCC 437
A lump sum of approximately $2.5 million received by the taxpayer, an executive, on the termination of his employment pursuant to a Settlement...
Dunphy v. The Queen, 2010 DTC 1028 [at at 2671], 2009 TCC 619 (Informal Procedure)
Sheridan, J. determined the portion of $45,000 payment received by the taxpayer on termination by his employer to be allocated to the taxpayer's...
Rae v. The Queen, 2010 DTC 1107 [at at 3044], 2010 TCC 130
[The taxpayer, a corporate controller, was suspended with pay after alleging that management was manipulating the Canadian corporation's financial...
Schewe v. The Queen, 2010 DTC 1056 [at at 2810], 2010 TCC 47
At a time that the taxpayer was the dean of a program at a university, the university determined to also permit the taxpayer to become a full-time...
Wedge v. The Queen, 2005 DTC 1213, 2005 TCC 480
A payment made to the taxpayer by his employer upon his termination of employment by an affiliated corporation did not qualify as a retiring...
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| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose | 36 |
Ahmad v. The Queen, 2002 DTC 2065 (TCC)
The taxpayer was wrongfully demoted and stripped of his significant responsibility by his employer at the instigation of a major customer (Ontario...
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| Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(c) | 61 |
Fostey v. R, 99 DTC 1004, [1999] 4 CTC 2575 (TCC)
The taxpayer was the chief executive officer of a corporation that sold its business to another corporation. In finding that a lump sum received...
Anderson v. R., 98 DTC 1190, [1998] 1 CTC 2522 (TCC)
The full amount of a lump sum received by the taxpayer in settlement of his action for alleged wrongful dismissal was a retiring allowance...
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...
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| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Employment | 55 |
George Niles v. Minister of National Revenue, 91 DTC 806, [1991] 1 CTC 2540 (TCC)
The taxpayer, whose employment was terminated and who then received the sum of $5,000 from his employer following his filing of a formal complaint...
Merrins v. MNR, 91 DTC 699, [1991] 2 CTC 2045 (TCC)
The taxpayer, who was laid off by his employer and filed a grievance under the collective agreement, received an award from the arbitrator as a...
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...
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| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Employee Benefit Plan | 107 |
Serafini v. MNR, 89 DTC 653, [1989] 2 CTC 2437 (TCC)
The regular salary package which the taxpayer received during the one-year period between the time that he ceased his duties of employment and the...
Harel v. Deputy Minister of Revenue (Quebec), 77 DTC 5438, [1977] CTC 441, [1978] 1 S.C.R. 851
A lump sum received on his retirement by the taxpayer in settlement of his accumulated sick-leave credit under the sickness benefit plan contained...
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| Tax Topics - Statutory Interpretation - Interpretation Bulletins, etc. | 62 |
Administrative Policy
26 June 2024 External T.I. 2023-0961541E5 - Retiring allowance – instalment payments
Is a retiring allowance, that is paid in instalments, required to be paid within a certain period of time after the termination of employment? CRA...
28 July 2017 External T.I. 2017-0685961E5 - Taxation of Settlement Amounts
A Settlement Amount was provided to current and former employees of the Employer to settle a grievance regarding the cancellation of various...
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| Tax Topics - Income Tax Act - Section 6 - Subsection 6(3) - Paragraph 6(3)(b) | settlement amounts paid after repudiation of post-retirement health benefits were deemed employment income | 230 |
| Tax Topics - Income Tax Act - Section 5 - Subsection 5(1) | amounts received in settlement of employment grievances to be s. 5 income on general principles | 211 |
21 July 2017 Internal T.I. 2017-0714931I7 F - Retiring allowance - Sick Leave
Under a collective agreement, an employee's sick leave credits (net of days used) are accumulated in a reserve ("Reserve") and, in December of...
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| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Death Benefit | includes payout on death of accumulated (non-excess) sick leave credits | 195 |
| Tax Topics - Income Tax Act - Section 5 - Subsection 5(1) | payout on termination of accumulated sick leave credit is employment income to extent otherwise would have been paid at year end | 84 |
6 June 2016 Internal T.I. 2015-0590411I7 F - Revenu d’emploi ou allocation de retraite
Situation 1
On Date 1, the taxpayer was informed by letter of her employer that her employment would terminate on Date 2 (being the end of the...
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| Tax Topics - Income Tax Act - Section 5 - Subsection 5(1) | "salary" paid after notice period was retiring allowance | 227 |
S2-F1-C2 - Retiring Allowances
Cessation of employment
2.7 ... The fact that an individual continues to participate in a health or dental plan of a former employer would not, on...
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| Tax Topics - Income Tax Act - Section 104 - Subsection 104(28) | 100 | |
| Tax Topics - Income Tax Act - Section 60 - Paragraph 60(j.1) | 195 | |
| Tax Topics - Income Tax Act - Section 3 | 224 |
27 January 2016 External T.I. 2015-0599581E5 - Taxation of a lump-sum from a former employer
An individual receives a lump-sum amount receivable from a former employer under a written agreement made following the termination of employment...
7 August 2014 External T.I. 2014-0521901E5 - Damages in settlement of grievances
the employer abolished the employee's position, but the employee remained employed by the same employer and was assigned different duties. The...
30 April 2013 External T.I. 2013-0479461E5 F - Sommes versées dans le cadre d règlement à l'amiable
After noting that the surrogatum principle applied in determining the character of amounts paid to a former employee by the employer in an...
21 March 2013 External T.I. 2012-0467221E5 - Retiring allowance converted to ELHT contribution
In response to a query as to made to employees. an employer must withhold income tax from a lump sum pre-retirement leave payment ("LPLP") made...
29 February 2012 External T.I. 2011-0431131E5 F - Sommes versées en règlement d'un grief
After a unionized employee filed a grievance for wrongful dismissal, the employer will pay the employee a lump sum so that the latter can make a...
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| Tax Topics - Income Tax Act - Section 5 - Subsection 5(1) | damages on retroactive reinstatement are taxable | 75 |
| Tax Topics - Income Tax Act - Section 60 - Paragraph 60(j.1) - Subparagraph 60(j.1)(v) | previous employment years of service included if bought back | 145 |
| Tax Topics - Income Tax Act - Section 60 - Paragraph 60(j.1) - Subparagraph 60(j.1)(ii) - Clause 60(j.1)(ii)(B) | employer contributions vest for each year bought back by an employee | 121 |
11 August 2011 External T.I. 2011-0406061E5 F - Dommages reçus suite à la perte d'un emploi
Is compensation for renouncing rights of reinstatement that is received in settlement of union grievances taxable? CRA responded:
[C]ompensation...
23 February 2011 External T.I. 2010-0389701E5 F - Sommes versées en règlement de griefs
Is compensation received for renunciation of reinstatement of employment and waiver of notice, employment search costs or damages, that is paid in...
12 August 2010 Internal T.I. 2010-0356781I7 F - Allocation de retraite, indemnité 2091 C.c.Q.
Art. 2091 of the Civil Code of Québec (C.C.Q.). requires an employer to provide reasonable notice of termination, and Art. 2092 provides that...
16 December 2009 External T.I. 2009-0349031E5 F - Allocation de retraite, congés de maladie
An employee is reimbursed for a portion of the employee’s accumulated sick leave, with the amount being paid to the employer's pension plan to...
22 May 2009 External T.I. 2009-0311241E5 F - Compensation reçue pour harcèlement psychologique
The Labour Relations Board found that an employee had not been wrongfully dismissed, so that the individual was not entitled to damages or salary...
14 April 2009 External T.I. 2009-0307791E5 F - Allocation de retraite et congé de maladie
Pursuant to the collective agreement, an employer grants sick leave to its employees annually, with the balance of the sick leave paid out in...
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| Tax Topics - Income Tax Act - Section 5 - Subsection 5(1) | payment of accumulated sick leave on termination was employment income given pattern of annual payouts | 144 |
17 November 2008 Internal T.I. 2008-0299621I7 F - Allocation de retraite
Amounts received from the former employer as compensation for loss of wages within the meaning of s. 53(2)(c) of the Canadian Human Rights Act and...
6 February 2008 External T.I. 2007-0248161E5 F - Retenues à la source / Congédiement
The lawyers for a dismissed employee proposed that the wrongful dismissal claim be settled by the payment of a non-taxable amount. CRA...
4 December 2007 Internal T.I. 2007-0255381I7 F - Dommages reçus suite à la perte d'un emploi
Is an amount paid by an employer to an employee, to compensate the employee following a dismissal and a complaint of psychological harassment,...
19 October 2004 Internal T.I. 2004-0085711I7 F - Dommages suite à une entente hors cour
A settlement agreement signed by the taxpayer in settlement of her grievances launched with the assistance of her union stated that she resigned...
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| Tax Topics - Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(n) | required repayment of excess amount of wage loss insurance previously received could give rise to s. 8(1)(n) deduction | 139 |
12 October 2004 External T.I. 2004-0086331E5 F - Allocation de retraite
Compensation offered by the employer to a terminated employee will be equivalent to approximately two years' salary. At the employee's request,...
28 June 2004 Internal T.I. 2004-0073761I7 F - Dommages-intérêts-perte d'emploi
After the taxpayer was wrongfully dismissed, an arbitrator ordered that the taxpayer be reinstated and be paid his back pay. The corporate...
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| Tax Topics - Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(l.1) | reimbursement of legal costs incurred to recover damages for failure to reinstate were includible under s. 56(1)(l.1) | 122 |
| Tax Topics - Income Tax Act - Section 60 - Paragraph 60(o.1) | deduction for legal fees incurred to recover damages that were retiring allowance | 127 |
| Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(c) | change regarding pre-judgment interest judicially ordered after 2003 | 95 |
21 June 2004 External T.I. 2004-0074851E5 F - Allocation de retraite
The Municipality decided to cease providing municipal services for its territory and signed an agreement with the another City (the "City") to...
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| Tax Topics - Income Tax Act - Section 251 - Subsection 251(2) - Paragraph 251(2)(c) - Subparagraph 251(2)(c)(i) | two municipalities were not Crown agents or controlled by provincial government and, therefore, were not related | 261 |
| Tax Topics - Income Tax Act - Section 60 - Paragraph 60(j.1) - Subparagraph 60(j.1)(ii) - Clause 60(j.1)(ii)(C) | unrelated person who has assumed a severance payment obligation is treated as paying the severance on behalf of the “employer” who terminated | 180 |
10 February 2004 External T.I. 2003-0053311E5 F - Indemnité de préavis - allocation de retraite
On their dismissal, employees each received a lump sum which was computed as consisting of the required payment in lieu of notice under the...
13 June 2003 External T.I. 2003-0184285 F - ALLOCATION DE RETRAITE
Regarding whether being granted associate professor status would adversely affect the treatment as a retiring allowance of an amount received by...
25 February 2002 Internal T.I. 2001-0114167 F - DOMMAGES - DISCRIMINATION
After filing a complaint pursuant to the Canadian Human Rights Act (the “CHRA”), the taxpayer received a lump sum from his employer pursuant...
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| Tax Topics - Income Tax Act - Section 3 - Paragraph 3(a) | awards by human rights tribunals for pain and suffering re wrongful termination often are under $5,000 | 146 |
23 August 2001 External T.I. 2001-0095015 F - ALLOCATION DE RETRAITE
CCRA indicated that a payment received, say, 18 months before the loss of employment could be received as a retiring allowance even if the...
1 June 2001 Internal T.I. 2001-0067047 F - DOMMAGES DISCRIMINATION
The Quebec Human Rights Tribunal declared that the refusal to of a School Boar to hire the taxpayer for the half-teaching position constituted...
28 February 2001 Internal T.I. 2000-0061667 F - COTIDATIONS-ALLOC. FIN DE CARRIERE
An end-of-career allowance received by an employed physician constituted a retiring allowance.
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| Tax Topics - Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(i) - Subparagraph 8(1)(i)(i) | professional dues not deductible from end-of-career allowance received by physician | 91 |
| Tax Topics - Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(i) - Subparagraph 8(1)(i)(iii) | union dues paid to the Quebec doctors’ federations were deductible from retirement allowances received as business income but not as retiring allowances | 104 |
14 September 2000 External T.I. 2000-0037085 F - ALLOCATION DE RETRAITE
A lump sum paid by an insurer to an employer in satisfaction of salary insurance benefits could not then be paid by the employer to the employee...
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| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(f) | a lump sum paid in satisfaction of an insurer's obligations under a wage loss replacement plan were taxable irrespective of whether paid as a lump sum and via the employer | 94 |
| Tax Topics - Income Tax Act - Section 153 - Subsection 153(1) - Paragraph 153(1)(a) | lump sum wage loss payments paid by an insurance company to the employer for on-payment were subject to source deductions | 68 |
16 November 2000 Internal T.I. 2000-0035067 F - ALLOCATION DE RETRAITE
Regarding a terminated employee who received damages (pursuant to a settlement of his action) as compensation for the loss of his performance...
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| Tax Topics - Income Tax Act - Section 7 - Subsection 7(1) - Paragraph 7(1)(b) | damages received for terminated stock option plan were a retiring allowance rather than taxable under s. 7(1)(b) | 66 |
23 October 2000 Internal T.I. 2000-0027477 F - ALLOCATION DE RETRAITE
Notwithstanding the position of the TSO that a severance payment was not received by the taxpayer given that he was already engaged in setting up...
18 September 2000 External T.I. 2000-0026805 F - PAIEMENTS DANS LE CADRE D'UN CONGEDIEMENT
CCRA found that a payment made to a dismissed employee in lieu of reasonable notice was s. 5 employment income rather than a retiring allowance. ...
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| Tax Topics - Income Tax Regulations - Regulation 102 - Subsection 102(1) | reimbursed legal costs of dismissed employee paid by the employer are not subject to withholding if such costs were deductible under s. 8(1)(b) | 55 |
24 August 2000 Internal T.I. 2000-0034117 F - PROGRAMME DE RETRAITE ANTICIPÉE
CRA applied its practice of generally avoiding recognition of amounts received as a retiring allowance if the employer treats them as employment...
1998 Revenue Canada Paper 9824890
Comprehensive discussion of issues arising out of termination of employment.
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| Tax Topics - Income Tax Act - Section 5 - Subsection 5(1) | 12 |
30 November 1996 Ruling 9709133 - TAXABILITY OF GENERAL DAMAGES
Damages to be received by a resigning employee in respect of her sexual harassment claim and in respect of a claim for malicious prosecution,...
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| Tax Topics - Income Tax Act - Section 9 - Exempt Receipts/Business | 76 | |
| Tax Topics - Income Tax Act - Section 9 - Expense Reimbursement | 76 |
8 October 1996 T.I. 962701 (C.T.O. "Loss of Employment, Mental Distress, Damages")
"Generally ... payments made by an employer to an employee in connection with the loss or termination of employment, whether or not received as...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(l.1) | 65 | |
| Tax Topics - Income Tax Regulations - Regulation 100 - Subsection 100(1) - Remuneration | 16 |
Income Tax Technical News, No. 7, 21 February 1996 (cancelled)
Where an individual retires from all employment on the sale of the employer's active business but agrees to carry on certain administrative duties...
3 August 1995 Internal T.I. 9520017 - RETIRING ALLOWANCE AND RETURN TO SAME EMPLOYER
"If a person is terminated and receives a termination payment, without any assurance of being rehired, it is our position that the payment can be...
4 July 1995 External T.I. 9516755 - RETIRING ALLOWANCE GENERAL LETTER
Where an individual was terminated from full-time employment and, at the same time, was rehired on a part-time basis for a three-year period, a...
15 June 1995 External T.I. 9508375 - FRINGE BENEFITS AND RETIRING ALLOWANCE
"The amount paid by the employer on the employee's behalf for the maintenance of health benefits is not considered a retiring allowance for the...
9 February 1995 Internal T.I. 9418527 - DAMAGES FOR EMPLOYMENT RELATED HUMAN RIGHT VIOLATION
Where the taxpayer has resigned voluntarily and the remedy sought by her in her complaint was the loss of salary attributable to her former...
1 November 1994 External T.I. 9426035 - RETIRING ALLOWANCE
"Continued participation in a former employer's health plan (i.e.,drug, dental, long term disability plan) for a restricted period of time would...
11 October 1994 Internal T.I. 9418166 - EX GRATIA PAYMENT
An Ex gratia payment authorized by a Order in Council in connection with a wrongful dismissal grievance will be taxable either as employment...
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| Tax Topics - Income Tax Act - Section 5 - Subsection 5(1) | 30 |
13 September 1994 External T.I. 9419775 - RETIRING ALLOWANCE RCA DOWNGRADE OF POSITION
A retiring allowance cannot be paid on the downgrading of an employment position.
28 June 1994 External T.I. 9413245 - RETIRING ALLOWANCE
Where a retiring allowance is to be paid in installments, any amount calculated as interest on the installments will characterized as interest and...
24 June 1994 Internal T.I. 9416107 - XXXXXXXXXX WORKFORCE REDUCTION PAYMENT
"If the parties agreed during negotiations before or after termination that the employee is entitled to a certain notice period, then a payment in...
22 June 1994 External T.I. 9412745 - RETIRING ALLOWANCE
"The Department has taken the position that a payment in lieu of earnings for the period of reasonable notice which is made by virtue of the...
12 May 1994 Institute of Chartered Accountants of Alberta Round Table, Q. 12, File No. 940969 (C.T.O. "Retiring Allowance Pay in Lieu of Notice")
A payment made in lieu of earnings for the period for which reasonable notice is required by virtue of the terms of an employment contract...
1 March 1994 T.I. 94022 (C.T.O. "H.A.A. 7278-1 Retiring Allowance Return to Employment")
Where an individual is rehired (on a casual, part-time or contract basis) by a former employer or an affiliated employer, shortly after leaving an...
8 March 1994 External T.I. 9400085 - HAA7278-1 RETIRING ALLOWANCE PAY IN LIEU OF NOTICE
Termination pay received pursuant to s. 57 of the Employment Standards Act (Ontario) does not constitute a retiring allowance whether or not...
17 February 1994 External T.I. 9400525 - HAA4749-1 RETIRING ALLOWANCE, PENSION ACCRUALS
A person is not considered to have retired or lost an office or employment if pensionable service under a registered pension plan continues to...
8 February 1994 Internal T.I. 9337207 F - Retiring Allowance on Transfer Within School Board
Head Office generally was of the view that an employee who transfers from a staff support position to a teaching position with the same school...
93 C.R. - Q. 34
Termination pay in lieu of notice received under s. 57 of the Employment Standards Act (Ontario) will not be a retiring allowance whether or not...
7 December 1993 Income Tax Severed Letter 9333975 - Retiring Allowances—Interest
It is a question of fact whether a payment of interest in respect of a severance payment is a retiring allowance or interest for purposes of the Act.
19 November 1993 External T.I. 9325085 F - HAA-7278-1 Retiring Allowance Inactive Corporation
It is a question of fact whether the degree of involvement by an individual in a corporation following the sale of all his shares will be...
5 July 1993 Memorandum (Tax Window, No. 33, p. 8, ¶2643)
Under paragraph 30(c) of the Canada Labour Standards Regulations, an employee is considered to have been laid off where she was advised that the...
10 June 1993 Memorandum (Tax Window, No. 32, p. 4, ¶2594)
Where in an out-of-court settlement of a suit brought in connection with the termination of employment, an amount is allocated as damages for...
4 June 1993 Memorandum (Tax Window, No. 32, p. 9, ¶2602)
Where an employee is dismissed, receives an arbitration award and is reinstated in his former position, then if the reinstatement is on a...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) | 45 |
17 May 1993 Memorandum (Tax Window, No. 31, p. 1, ¶2507)
Where a long-term unionized employee has been laid off by his employer or has retired without any assurance of being rehired, an amount received...
28 April 1993 Income Tax Severed Letter 9312026 - Retiring Allowance Employment Standards Act
Termination pay received pursuant to s. 57 of the Employment Standards Act (Ontario) will be considered to be employment income rather than a...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 153 - Subsection 153(1) - Paragraph 153(1)(a) | 86 |
9 March 1993 T.I. (Tax Window, no. 29, p. 21, ¶2458)
A payment received by a union from an employer who closed one of its operations as compensation for the loss of exclusive bargaining rights, the...
12 January 1993 T.I. (Tax Window, No. 20, p. 16, ¶2385)
When an employee ceases work due to retirement but pension benefits continue to accrue or normal employee benefits continue to be enjoyed by the...
5 November 1992 Ministerial Letter 9118508 F - Damages Awards as Retiring Allowances
General damages awarded by a human rights tribunal would not constitute a retiring allowance.
12 August 1992 External T.I. 5-921978
For purposes of the position that an employee will not have retired if employment continues with an affiliate of the former employer, RC will...
8 April 1992 T.I. (Tax Window, No. 18, p. 19, ¶1844)
A payment made to an employee upon being promoted to partner is not necessarily a retiring allowance.
5 February 1992 Internal T.I. 7-920092
Where an employee dies and the balance of accumulated sick leave credits in respect of the employee continue to be paid to his beneficiaries, such...
5 February 1992 T.I. (January - February 1993 Access Letter, p 36, ¶C248-123)
It is unlikely that employment has ceased where pension benefits continue to accrue or normal employee benefits continue to be enjoyed by the...
22 January 1992 T.I. (Tax Window, No. 15, p. 5, ¶1707)
A payment will not be considered to be a retiring allowance when, at the time the employee ceases employment, there is assurance that he will be...
10 June 1991 Memorandum (Tax Window, No. 4, p. 27, ¶1287)
An amount received as damages on the withdrawal of an offer of employment may come within the definition if the "withdrawal" is in fact the...
90 C.R. - Q4
Where an individual entitled to a retiring allowance dies, the amount received by the estate as a consequence of his death is a death benefit.
23 April 1990 T.I. (September 1990 Access Letter, ¶1436)
Where an individual is a majority shareholder and employee of both A Ltd. and B Ltd., a payment made to him upon his retirement from A Ltd. while...
18 October 89 T.I. (March 1990 Access Letter, ¶1156)
Pre-judgment interest received in a court award would be excluded from income, and therefore withholding tax is not required to be deducted on the...
89 C.R. - Q.50
RC does not consider an employee to have retired where he continues employment with any person who acquired or continues the business carried on...
86 C.R. - Q.52
a payment made by a partnership to a retired partner may qualify as a retiring allowance provided that the amount is paid in recognition of the...
84 C.R. - Q.20
it is essentially a determination of fact whether a series of payments represents pension benefits under s. 56(1)(a)(i) or retiring allowance...
84 C.R. - Q.23
loss of office does not include a transfer (or demotion) from one position to another with the same employer.
IT-337R2 "Retiring Allowances" under "Tax Deferral"
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| Tax Topics - Income Tax Act - Section 60 - Paragraph 60(j.1) | 0 |
Articles
Brown, "Revisiting the Tax Treatment of Settlement Amounts: Recent Developments", Taxation of Executive Compensation and Retirement, Vol. 8, No. 6, February 1997, p. 243.
Collins, "The Terminated Employee: Minimizing the Tax Bite", 1993 Conference Report, C. 31.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 60 - Paragraph 60(j.1) | 0 |