Words and Phrases - "fellowship"
Chabaud c. La Reine, 2012 DTC 1076 [at 2856], 2011 TCC 438 (Informal Procedure)
Archambault J. found that "bursary" amounts that the taxpayer received from the University of Laval in connection with his postdoctoral fellowship at that university were employment income rather than amounts described under s. 56(1)(n), because his work was in the nature of "employment" under Quebec civil law. Under art. 2085 of the Civil Code, "a contract of employment is a contract by which a person, the employee, undertakes for a limited period to do work for remuneration, according to the instructions and under the direction or control of another person, the employer." The relative independence of research fellows as employees was irrelevant given that they were ultimately accountable to their supervisors. Archambault J. stated (at para. 72):
Having more independence does not necessarily mean that there is no relationship of subordination. The existence of a relationship of subordination does not depend on the right of direction and control being exercised, but on the existence of the right to exercise such control.
None of the amounts received by the taxpayer was a "bursary," namely "an amount granted either as financial aid, or in recognition of the student's excellence" (para. 79) given that they were paid for services, and the taxpayer no longer was a student (but, rather, was analogous to an articling student or medical resident). In addition, none of the amounts received was a "fellowship," namely, "assistance or a grant given to a person to enable the person to acquire new knowledge" (para. 89) as the goal of the University instead was to remunerate him for services he rendered. Furthermore (and in response to Savage), s. 56(1)(n) was amended to provide "that scholarships and bursaries paid by an employer to its employee are entirely taxable" (para. 93), so that it would not have assisted the taxpayer if the amounts received had been bursaries or fellowships.
|Locations of other summaries||Wordcount|
|Tax Topics - General Concepts - Substance||labels not deterinative||58|
|Tax Topics - Income Tax Act - Section 5 - Subsection 5(1)||166|
|Tax Topics - Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(o)||48|