Cases
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(1) - Employee Benefit Plan | 41 | |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(28) | double taxation from transfer to, and out of trust, avoided by applying the more specific statutory rule, rather than s. 4(4) ordering rule directly | 378 |
| 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 248 - Subsection 248(1) - Employee Benefit Plan | 161 |
See Also
Black v. The King, 2024 TCC 96
A year before a sale of 61% of a private Canadian video gaming company for Cdn.$73 million (with the balance of the company sold two years later...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(g) | distributions from an employee benefit trust were fully taxable as s. 7(2) did not apply to it | 316 |
Administrative Policy
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 ABC Inc. that had held shares of ABC Inc. since January 1, 2021, will add Mr. X as a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Employee Benefit Plan | the EBP rather than s. 7 rules applied to a share plan for employees where share distributions were discretionary | 404 |
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 110 - Subsection 110(1) - Paragraph 110(1)(d) | no agreement to issue shares if vesting in employer's discretion | 263 |
3 December 2009 External T.I. 2009-0311921E5 F - ESOP-US
Does s. 7 apply where a trust created under an employee stock ownership plan (the "Plan") acquires all of the shares of USCO and each year the...
2 May 2001 Internal T.I. 2001-007939 F - CONVENTION D'EMISSION D'ACTIONS
After providing an overview of s. 7(2), the Directorate noted that in this case whether it applied turned on a factual determination of whether...
2 February 2001 Internal T.I. 2000-0058127 F - Convention d'émission d'actions
In the course of a general discussion, the Directorate noted that the application of s. 7 was not restricted to stock options and that it could...
3 May 1994 External T.I. 9409755 - TAX ADJUSTMENT FOR FORFEITURE UNDER STOCK OPTION
S.7(2) deems an employee to have acquired a share at the time a trustee commences to hold it for the employee, even if the employee's entitlement...
Articles
Elizabeth Boyd, Jeremy J. Herbert, "Trusts Holding Shares For Employees", draft 2023 CTF Annual Conference paper
Use of s. 7(2) trusts predominantly by CCPC employers (p. 22)
- S. 7(2) trusts are not common where the employer is not a CCPC, since the employee...
Ian MacDonald, "Trusts Holding Employee Shares - After the Initial Transfer", Taxation of Executive Compensation and Retirement, Vol 22, No.10, June 2011, p. 1415:
There are a number of indicators which suggest that an s. 7(2) trust is not governed by various employee benefit plan rules.