Words and Phrases - "prize"

a
88
b
44
c
81
d
55
e
38
f
31
g
20
h
15
i
75
j
2
k
2
l
32
m
57
n
25
o
38
p
81
q
3
r
77
s
91
t
47
u
16
v
10
w
23
y
2

Canada v. J. Hudon Enterprises Ltd., 2010 FCA 37

Summary Under
Tax Topics - Excise Tax Act - Section 188 - Subsection 188(1)
trainer and driver’s share of race track winnings were received as fees rather than prizes

The respondent trained and drove standardbred race horses at various Ontario race tracks, and received directly from the race track a share of the purses, calculated as 5% to the driver and 5% to the trainer.

Stratas JA stated (at paras. 19, 22):

[A] "prize" under subsection 188(2) is an honour, an award or winnings that are won by those who demonstrate superiority or achievement over and beyond the rest of the field of competitors in a competition or contest. A fee, on the other hand, is remuneration, emolument, recompense or compensation that is earned by a particular person for performing particular services under a contract of employment or other direct retainer. …

In this case, the only possible conclusion is that the monies received by the respondent are success fees for driving and training services it provided to owners, not "prizes" within the meaning of subsection 188(2)….

In support of this conclusion, he referenced Rule 18.11 of the Rules of Standardbred Racing enacted under the Racing Commission Act 2000 (Ontario), and stated (at para. 24):

[T]he Rule confirms that "drivers' and/or trainers' fees" [my emphasis] are deducted from the owners' purse money. This shows that drivers and trainers are not entitled to purse money; rather, they are entitled to their "fees" and they are entitled to have them paid from the purse money.

Words and Phrases
prize fee

The Queen v. Savage, 83 DTC 5409, [1983] CTC 393, [1983] 2 S.C.R. 428

Summary Under
Tax Topics - Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(n)
award to employee for passing a difficult exam relevant to her qualifications was a "prize for achievement"

$300 received by an employee of a life insurance company pursuant to its policy of paying such amounts to all of its employees who passed the difficult Life Office Management Association courses was exempt as falling within the ordinary meaning of a "prize for achievement" in the life insurance business, there being no requirement that there have been a contest with others, and it being irrelevant that the amount in the absence of s. 56(1)(n) would have been taxable as employment income.

Words and Phrases
prize
Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) taxable s. 6 benefit need not be remuneration for services 85
Tax Topics - Statutory Interpretation - Redundancy/ reading in words/ speaking in vain exclusion in specific provision extended to general provision to avoid redundancy 158