Cases
Hale v. The Queen, 90 DTC 6481, [1990] 2 CTC 247 (FCTD), aff'd 92 DTC 6473 (FCA)
While resident in Canada, the taxpayer was granted rights under the employee stock option plan of his Canadian employer and further rights (the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 115 - Subsection 115(2) - Paragraph 115(2)(e) - Subparagraph 115(2)(e)(i) | 93 | |
| Tax Topics - Income Tax Act - Section 7 - Subsection 7(1) - Paragraph 7(1)(b) | 129 |
See Also
Martin v. The King, 2024 TCC 153
Regarding the taxation of US athletes with employment income earned 40% in Canada and 60% in the US, Gagnon J found that pursuant to the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 115 - Subsection 115(1) - Paragraph 115(1)(a) - Subparagraph 115(1)(a)(i) | total income of athletes was apportioned to Canada and the US before applying the domestic income-computation rules to their Canadian-source income | 935 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Salary Deferral Arrangement | taxpayers' RCAs were not SDAs because they provided for reasonable pensions | 501 |
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) - Subparagraph 6(1)(a)(ii) | s. 6(1)(a)(ii) exclusion applied only after the computation of the non-resident taxpayers’ Canadian-source income | 531 |
| Tax Topics - Income Tax Act - Section 207.5 - Subsection 207.5(1) - Refundable Tax | overview of RCA rules | 222 |
| Tax Topics - Income Tax Act - Section 5 - Subsection 5(1) | RCA contributions would be employment income under ss. 5(1) or 6(1)(b) absent the s. 6(1)(a)(ii) exclusion | 393 |
Garcia v. The Queen, 2007 DTC 1593, 2007 TCC 548 (Informal Procedure)
A bonus received in 2003 by the taxpayer when he was a resident of Canada was taxable in Canada, notwithstanding that the bonus was earned in 2002...
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|---|---|---|
| Tax Topics - Treaties - Income Tax Conventions - Article 4 | 89 |
Sutcliffe v. The Queen, 2006 DTC 2076, 2005 TCC 812
The taxpayer was a U.S. resident who was employed by Air Canada as a pilot on domestic flights (between Toronto and other Canadian cities) and...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 115 - Subsection 115(1) - Paragraph 115(1)(a) - Subparagraph 115(1)(a)(i) | 93 |
Prescott v. The Queen, 96 DTC 1372, [1995] 2 CTC 2068 (TCC)
Remuneration of $2,474 that the taxpayer (a U.S. resident) earned from employment at Simon Fraser University was exempt under paragraph 2 of...
Administrative Policy
9 July 2021 Internal T.I. 2021-0893981I7 - CERB received by non-residents
Regarding the treatment of payments (“CERB Payments”) made pursuant to the Canada Emergency Response Benefit Act (the “CERB Act”) to an...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 120 - Subsection 120(1) | CERB payments subject to the additional federal tax under s. 120(1) | 117 |
| Tax Topics - Treaties - Income Tax Conventions - Article 24 | elimination of double taxation Art. addresses relief for taxation by Treaty partner of CERB payments | 182 |
Guidance on international income tax issues raised by the COVID-19 crisis, CRA Webpage 31 March 2021
CRA referred to the travel restrictions imposed by governments or businesses in response to the COVID-19 crisis as a safety measure for their...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 2 - Subsection 2(1) | 393 | |
| Tax Topics - Treaties - Income Tax Conventions - Article 5 | 390 | |
| Tax Topics - Income Tax Act - Section 2 - Subsection 2(3) - Paragraph 2(3)(b) | 129 | |
| Tax Topics - Income Tax Act - Section 153 - Subsection 153(1.1) | 239 | |
| Tax Topics - Income Tax Regulations - Regulation 105 - Subsection 105(1) | 168 | |
| Tax Topics - Income Tax Act - Section 116 - Subsection 116(1) | comfort letters issued during COVID-19 | 36 |
7 September 2016 External T.I. 2014-0559751E5 - Subsection 115(3)
S. 115(3) allocates 100%, 50% or 0% of the employment income of a non-resident pilot from a flight to Canada based on whether both, one out of...
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| Tax Topics - Income Tax Act - Section 115 - Subsection 115(3) | comparison of the Treaty method for allocating non-resident pilot income to the domestic (s. 115(3)) method should be done on an annual basis | 155 |
20 July 2015 Internal T.I. 2012-0457671I7 - Treaty triangulation - Article 15
Mr. X, who is an employee of BCo, is a resident of State X for treaty purposes. BCo, which is a resident of State B for treaty purposes, carries...
20 March 2015 External T.I. 2014-0534301E5 - Canadian Withholding Tax on Retiring Allowance
A lump sum payment in compensation for a loss of employment at a French subsidiary is made by Canco to a non-resident of Canada who had been...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 115 - Subsection 115(2) - Paragraph 115(2)(e) - Subparagraph 115(2)(e)(i) | retiring allowance paid to non-resident for loss of non-resident employment | 56 |
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(j.1) | retiring allowance paid to non-resident for loss of non-resident employment | 149 |
| Tax Topics - Treaties - Income Tax Conventions - Article 22 | retiring allowance paid to French individual for loss of non-resident employment | 73 |
10 February 2015 External T.I. 2013-0484501E5 - Treaties Article XV
Part-way through a year an individual ceased to be Canadian-resident and became a U.S. resident but derived employment income from the exercise of...
16 June 2014 External T.I. 2013-0515431E5 - International traffic and airline enterprise
During peak season, Canco, which transports passengers to destinations inside and outside Canada, is supplied planes and non-resident pilots and...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 115 - Subsection 115(1) - Paragraph 115(1)(a) - Subparagraph 115(1)(a)(i) | application of Sutcliffe/Price allocation approach were s. 115(3) not applicable | 150 |
| Tax Topics - Income Tax Act - Section 115 - Subsection 115(4) | non-resident's provision of crew and aircraft to Canadian airline | 150 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - International Traffic | non-resident's provision of crew and aircraft to Canadian airline | 109 |
| Tax Topics - Income Tax Act - Section 81 - Subsection 81(1) - Paragraph 81(1)(c) | non-resident's provision of crew and aircraft to Canadian airline | 109 |
| Tax Topics - Income Tax Regulations - Regulation 102 - Subsection 102(1) | Reg. 102 withholding or waiver notwithstanding Treaty exemption | 166 |
26 February 2014 External T.I. 2013-0487961E5 - Excluded Right or Interest
A senior employee of Canco, who is entitled to receive "free shares" from treasury as determined by management, with a vesting period of 4 to 6...
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| Tax Topics - Income Tax Act - Section 128.1 - Subsection 128.1(10) - excluded right or interest - (c) | unvested rights to free shares | 143 |
3 February 2014 External T.I. 2012-0464541E5 - Article 15 of the Canada-Germany Income Tax Treaty
One of the components of the safe-harbour rule in Art. 15(2)(a) of the Canada-Germany Treaty is that the employee is present in Canada for a...
6 July 2012 Internal T.I. 2012-0440741I7 - stock option benefit derived by US resident
USCo, which is a qualifying person for purposes of the Canada-US Income Tax Convention and is a wholly-owned subsidiary of a Canadian public...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 115 - Subsection 115(1) - Paragraph 115(1)(a) - Subparagraph 115(1)(a)(i) | 195 | |
| Tax Topics - Income Tax Act - Section 153 - Subsection 153(1) - Paragraph 153(1)(a) | employer reimburser of stock option benefit amount subject to withholding obligation | 348 |
23 January 2012 External T.I. 2011-0418281E5 - Employment income - treaty exemption
Where US Co (not having a permanent establishment in Canada) provides the services of a US-resident employee for less than 183 days to its...
17 June 2011 External T.I. 2011-0403541E5 - "employer"/ "person"
Respecting Art. XV(2)(b) of the Canada-US Convention:
[T]he intention is to determine who, in fact, is exercising the functions of employer. In...
25 January 2010 Internal T.I. 2009-0319951I7 - Article 15 & definition of permanent establishment
ACo is a British company that performed seismic surveys offshore Canada. BCo is a Norwegian company that provided a crew to Aco under a service...
IC-6R2 para. 95 "Required Withholding from Amounts Paid to Non-Resident Persons Performing Services in Canada"
CRA has adopted the OECD position that the words "borne by" mean that the expenses allowable as a deduction in computing taxable income.
20 March 2002 Internal T.I. 2002-0126537 - Article XV(2); Employee Stock Options
A U.S. resident employee of a Canadian corporation was paid salary of $7,000 by it and granted stock options in respect of which he ultimately...
24 February 2003 Internal T.I. 2002-0165537 F - Le détachement d'employés et l'article XV
A Canadian resident was seconded to a U.S. corporation related to his Canadian employer in 2001 for a period of less than 183 days, with the U.S....
3 September 1997 Internal T.I. 9714337 - STOCK OPTION BENEFIT EXERCISED BY A NON-RESIDENT
The benefit realized by a resident of the U.S. on the exercise of an employee stock option was not taxable in Canada because he was not present in...
17 February 1995 External T.I. 9400545 - RESIDENCE & SOURCE DEDUCTIONS (HAA7576-1)
"Where a U.S. resident who is not a factual or deemed resident of Canada exercises his employment in Canada, his employer ... is required to...
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| Tax Topics - Income Tax Act - Section 250 - Subsection 250(1) - Paragraph 250(1)(a) | 113 |
2 December 1993 Income Tax Severed Letter 933330A F - Non-Resident Exercises Stock Option (4093-U5-100-15)
Stock option benefits arising to an individual in respect of his Canadian employment after he ceased to be employed and while a resident of the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 115 - Subsection 115(1) - Paragraph 115(1)(a) - Subparagraph 115(1)(a)(i) | 79 |
2 December 1993 Income Tax Severed Letter 9333306 - Non-resident Exercised a Stock Option
Where a U.S. resident exercises employee stock options issued to him by a U.S. public company while he was employed in Canada by a Canadian...
2 December 1993 Memorandum 933330 (C.T.O. "Non-Resident Exercise Stock Option (4093-U5-100-15)")
A detailed example showing how a stock option benefit ultimately realized by a U.S.-resident individual is allocated among his years of employment...
14 December 1992 Income Tax Severed Letter 912281A F - PROFESSIONS DÉPENDANTES\AVANTAGES EN VERTU D'UN EMPLOI
An employee stock option will be taxable under Paragraph 2 of Article XV of the Canada-U.S. Convention if, in the year the employment was...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 7 - Subsection 7(4) | 33 |
85 C.R. - Q.55
the phrase "borne by an employer in Article XV(2)(b) of the 1980 U.S. Convention means borne by the employer of the particular individual. Where a...
Articles
Kasper Dziurdź, "Article 15 of the OECD Model: The 183 Day Rule and the Meaning of 'Borne by a Permanent Establishment'", OECD, Bulletin for International Taxation, March 2013, p. 122
After reviewing the history of Article 15(2) of the OECD Model Convention, commencing with the Germany-Sweden Income Tax and Capital Treaty...
Susan Wooles, "Cross-border Employees: a Doubly Taxing Matter", Taxation of Executive Compensation and Retirement, Vol. 22, No. 4, November 2010, p. 1343
Includes discussion as to whether a US subsidiary is a contructive employer of a seconded Canadian employee; and whether employee loan-outs give...
Luc de Broe, "Interpretation of Article 15(2)(b) of the OECD Model Convention: 'Remuneration paid by, or on Behalf of, an employer who is not a resident of the other state'", Bureau of International Fiscal Documentation, Vol. 54, No. 10, October 2000, p. 503.
Bradley A. Sakich, "Inbound Personal Services", 1996 Conference Report, c. 44 at 44:8-10
Discussion of meaning of "borne by" and of decision in C.I.R. v. JFP Energy Inc. (1990), 14 TRNZ 617 (C.A.).
Dewling, "U.S. Residents Rendering Temporary Services in Canada May Be Subject to Canadian Tax on Remuneration Received from U.S. Employer", Taxation of Executive Compensation and Retirement, November 1990, p. 355.
OECD
OECD Discussion Draft, Working Party 1 "OECD Model Tax Convention: Tax Treatment of Termination Payments," 25 June 2013: Recommended additions to...