Words and Phrases - "remuneration"


Parker v. The Queen, 2015 DTC 1118 [at 745], 2015 TCC 86 (Informal Procedure)

CPP payments not remuneration from office or employment; neither were payments from a long-term disability plan paid by the employee himself

The taxpayer's husband was a clergyman, who collected payments under the Canada Pension Plan and a long-term disability plan. He also claimed the clergy residence deduction, with the result that his taxable income was $1,239. The taxpayer claimed a spousal amount and a federal disability amount transferred from her husband. The Minister reassessed the taxpayer on the basis that her husband was not entitled to the clergy residence deduction.

Paris J dismissed the taxpayer's appeal. The CPP and LDP amounts were not remuneration from the husband's employer. CPP amounts are paid under a statutory scheme rather than an employment relationship (para. 26), and the LDP premiums were paid by the husband himself (para. 27). Neither of these came within the broad interpretation of remuneration in Shaw.

Words and Phrases

Rogers Estate v. The Queen, 2015 DTC 1029 [at 124], 2014 TCC 348

exercise of stock option surrender plan for FMV was not "remuneration"

Pursuant to a share appreciation right ("SAR") attached to stock options granted by a public corporation which he controlled and of which he was the CEO, the taxpayer surrendered the options for a cash payment equal to their value.

After finding that the surrender payment was not a taxable employee benefit under s. 6(1)(a) (see summary under s. 7(3)(a)), Hogan J found that the payment also was not "salary, wages, and other remuneration" under s. 5(1), quoting the statement in Hale v. The Queen, 90 DTC 6481 (FCTD), aff'd 92 DTC 6473 (FCA) "that the words salaries, wages and other remuneration unavoidably correspond to a sum of money received in return for the provision of services."

Words and Phrases
Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 15 - Subsection 15(1) cash surrender of employee stock options for their value was not shareholder benefit 124
Tax Topics - Income Tax Act - Section 39 - Subsection 39(1) - Paragraph 39(1)(a) capital gain can arise from property which is not capital property 271
Tax Topics - Income Tax Act - Section 7 - Subsection 7(3) - Paragraph 7(3)(a) s. 7 a complete code for taxation of stock option benefits 230
Tax Topics - Income Tax Act - Section 9 - Capital Gain vs. Profit - Options holding one's employee stock options until just before they expire is not typical of an adventure in the nature of trade 185

The Queen v. Blanchard, 95 DTC 5479, [1995] 2 CTC 262 (FCA)

Before going on to find that an amount received by the taxpayer from his employer for the termination of a house buy-back agreement was a "benefit" from his employment under paragraph 6(1)(a), Linden J.A. contrasted the wording of s. 6(1)(a) with that of s. 5 (at p. 5480):

"The notion of 'remuneration', however, encompasses only those payments flowing from an employer to an employee for services rendered or work performed."

Words and Phrases

Attorney General of Canada v. MacDonald, 94 DTC 6262, [1994] 2 CTC 48 (FCA)

Before going on to find that a monthly housing subsidy received by an RCMP Officer from the Department of Supply and Services was a taxable allowance under s. 6(1)(b), Linden J.A. stated (p. 6263):

"The phrase 'salary, wages and other remuneration' is not broad enough to encompass all of those amounts flowing from an employer to an employee which are income from an office or employment, since remuneration is payment for services rendered or things done."

Words and Phrases

1 May 1995 Headquarter Letter File 11835-2

fees to independent contractors qualified as exempt remuneration

Managers (who were independent contractors rather than employees) resided at residences for handicapped individuals in order to provide assistance to the handicapped in their daily living by supervising their daily routines, providing counseling, supervising the preparation and organization of meals and providing transportation. CRA indicated that their remuneration respecting their services provided to the handicapped individuals would be exempt under paragraph (h) of the definition of institutional health care services..

Words and Phrases