Salary or Wages


Wood v. The Queen, 85 DTC 5552, [1985] 2 CTC 16, 85 DTC 5406 (FCTD)

The definition was found to be conclusive as to the meaning of the phrase "salary or wages" in the definition of "earned income" in s. 146(1)(c), and deductions allowed under s. 8 to the taxpayer accordingly were required to be deducted in computing her earned income.

Modern Miss Sportswear Ltd. v. The Queen, 80 DTC 6390, [1980] CTC 521 (FCTD)

It was stated that even if employees of contractors of the taxpayer were regarded instead as employees of the taxpayer, the payment by the taxpayer of the contractors' invoices could not be regarded as payment of "salaries and wages" to the contractors' employees.

The Queen v. Coopers & Lybrand Ltd., 80 DTC 6281, [1980] CTC 367 (FCA)

A privately-appointed receiver-manager, who paid the unpaid wages of the employees of the debtor company, argued that those amounts "were not wages but were gratuitous benefactions made in order to earn and preserve the good-will" of those persons. This contention was rejected in light of the facts that the cheques and payroll records respecting these payments were prepared in the same fashion as before the receiver-manager's appointment, and the employees would have been unaware that what they were receiving was other than taxable wages.

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 153 - Subsection 153(1) - Paragraph 153(1)(a) payroll not paid by receiver as agent of debtor 94
Tax Topics - Income Tax Act - Section 227 - Subsection 227(9) 193

See Also

Marzetti v. Marzetti (1994), 26 C.B.R. (3d) 161, [1994] 2 S.C.R. 765

An income tax refund received by an individual following his bankruptcy represented "wages" for purposes of s. 68 of the Bankruptcy Act to the extent that it represented a return of employer withholding deductions.

Administrative Policy

2 February 1993 Memorandum (Tax Window, No. 28, p. 13, ¶2417)

Amounts allocated to employees by the trustee of an employee profit sharing plan are not salaries and wages for purposes of Regulations 400 or 5202.

IC 75-6R "Required Withholding from Amounts Paid to Non-Resident Persons Performing Services in Canada"

Director's fees received by a non-resident person in respect of services rendered in Canada are included in "salary or wages".