Subsection 110(1) - Deductions permitted
Paragraph 110(1)(d) - Employee options
See Also
McAnulty v. The Queen, 2001 DTC 942 (TCC)
The time at which the taxpayer's employer agreed to issue shares to her was the time at which the president called her to his desk and told her...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Effective Date | 147 |
Bernier v. The Queen, 97 DTC 317 (TCC)
The taxpayer's employer issued employee stock options to the taxpayer and others. Later in the same year, the Quebec Securities Commission...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Illegality | 119 |
Amirault v. MNR, 90 DTC 1330 (TCC)
The taxpayer originally was granted options to acquire shares of his employer at an exercise price equal to 90% of the market price of the shares...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Effective Date | retroactive amendment to option price accepted | 39 |
Administrative Policy
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 7 - Subsection 7(2) | no agreement if allocation of shares in trustee's discretion | 272 |
3 August 2016 External T.I. 2015-0572381E5 - Employee Stock Option-CCPC Shares
A Canadian-controlled private corporation issues treasury shares to the employee holder of a stock option (with a fair market value exercise...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 7 - Subsection 7(1) - Paragraph 7(1)(b) | s. 7(1)(a) inapplicable where shares issued equal to in-the-money value | 91 |
| Tax Topics - Income Tax Act - 101-110 - Section 110 - Subsection 110(1) - Paragraph 110(1)(d.1) | not available where share payment of in-the-money value | 67 |
21 December 2012 Internal T.I. 2009-0327221I7 - Paragraph 7(1)(e) - Death of a Taxpayer
In response to a question regarding an employer's reporting requirements where a deceased employee was deemed to have disposed of unexercised...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 164 - Subsection 164(6.1) | 223 | |
| Tax Topics - Income Tax Act - Section 164 - Subsection 164(6.4) | 99 | |
| Tax Topics - Income Tax Act - Section 54 - Capital Property | 105 | |
| Tax Topics - Income Tax Act - Section 69 - Subsection 69(1) - Paragraph 69(1)(c) | FMV basis for stock options received by estate | 105 |
| Tax Topics - Income Tax Act - Section 7 - Subsection 7(1) - Paragraph 7(1)(e) | 99 |
Income Tax Technical News No. 19, 16 June 2000
"... Where an employee disposes of his or her rights under a securities option agreement in exchange for shares of the capital stock of the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 7 - Subsection 7(1) - Paragraph 7(1)(b) | 38 | |
| Tax Topics - Income Tax Act - Section 7 - Subsection 7(1.3) | 10 |
2004 Ruling 2004-007382
An employee stock option plan is amended by providing that each of the existing options will have an associated SAR added which entitles the...
8 March 2001 External T.I. 2001-007044
Where an employee has transferred employee stock options to a controlled corporation, the deduction under s. 110(1)(d) may not be available to the...
15 October 1997 T.I. 972531
Although a reduction in the exercise price for an employee stock option would not give rise to a disposition of the option, such reduction would...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 47 - Subsection 47(1) | 8 | |
| Tax Topics - Income Tax Act - Section 7 - Subsection 7(1.3) | 67 |
28 April 1995 T.I. 9850344
(See also 21 October 1996 T.I. 5-963321.)
Where an annuitant transfers an employee stock option having an accrued gain to his RRSP with the RRSP...
May 1995 Executive Institute Revenue Canada Round Table, Q. 24 (C.T.O "Employee Stock Option")
A deduction under s. 110(1)(d) may be deducted from a benefit included in income under s. 7(1)(e).
11 June 1993 T.I. (Tax Window, No. 31, p. 10, ¶2519)
Where an employee surrenders her rights under a phantom stock plan and receives an option to acquire shares in the employer company with an...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) | 85 | |
| Tax Topics - Income Tax Act - Section 7 - Subsection 7(1) - Paragraph 7(1)(a) | 103 |
13 January 1993 External T.I. 5-923395
RC does not as a general rule express an opinion on the reasonableness of a method proposed to be used in arriving at the fair market value of a...
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|---|---|---|
| Tax Topics - Income Tax Act - 101-110 - Section 110 - Subsection 110(1.5) | 87 |
92 C.R. - Q.46
Where a Canadian employee participates in a stock option plan where the relevant amounts are denominated in U.S. dollars, the requirements of s....
4 May 1992 Tax Executive's Round Table, Question 10 (December 1992 Access Letter, p. 48)
Where the provisions of s. 110(1)(d) otherwise are met, an employee will be entitled to the deduction in respect of cash payments received by the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 7 - Subsection 7(3) - Paragraph 7(3)(b) | 33 |
5 March 1991 T.I. (Tax Window, No. 2, p. 19, ¶1184)
For the purposes of determining the fair market value of the share, RC will not permit the deduction of a discount to reflect savings resulting...
8 September 89 Memorandum (February 1990 Access Letter, ¶1114)
An option to acquire shares of a U.S. corporation with an exercise price expressed in U.S. dollars will cease to qualify if the Canadian dollar...
87 C.R. - Q.22
The expression "at the time the agreement was made" in s. 110(1)(d)(iii) refers to the date on which an option to acquire a specific number of...
Articles
Colin Smith, "Re-pricing Employee Stock Options", Taxation of Executive Compensation and Retirement, December/January 2002, p. 63.
Eva Krasa, "Participation by Canadian Employees in U.S. Stock Option Plans: Some Issues", Taxation of Executive Compensation and Retirement, Vol. 12, No. 9, May 2001, p. 429
Includes a list of features of U.S. plans that may be problematic for the deduction.
Julie Y. Lee, "Attracting and Retaining Executives and Employees With Tax-Efficient Incentives", Canadian Petroleum Tax Journal, Vol. 14, No. 1, 2001
Includes discussion of tandem share appreciation rights.
Michael F.T. Addison, Gil J. Korn, "Employee Stock Options: An Up-Date", Personal Tax Planning, 2000 Canadian Tax Journal, Vol, 48, No. 3, p. 778.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 7 - Subsection 7(1) - Paragraph 7(1)(a) | 0 |
Paragraph 110(1)(d.1)
Administrative Policy
3 August 2016 External T.I. 2015-0572381E5 - Employee Stock Option-CCPC Shares
A Canadian-controlled private corporation issues treasury shares to the employee holder of a stock option (with a fair market value exercise...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 7 - Subsection 7(1) - Paragraph 7(1)(b) | s. 7(1)(a) inapplicable where shares issued equal to in-the-money value | 91 |
| Tax Topics - Income Tax Act - 101-110 - Section 110 - Subsection 110(1) - Paragraph 110(1)(d) | no 110(1)(d) where share payment of in-the-money value | 116 |
Paragraph 110(1)(f) - Deductions for payments
See Also
Whitney v. The Queen, 2001 DTC 423 (TCC)
Although the taxpayer's employer (the New Brunswick provincial government) was a self-insured employer for workers compensation purposes, the...
Subparagraph 110(1)(f)(i)
Administrative Policy
16 May 2016 External T.I. 2015-0571591E5 - Employees Provident Fund of Malaysia
In connection with the possibility that the a lump sum payment received by a recent Canadian resident out of a Malaysian pension plan (namely, the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Superannuation or Pension Benefit | pension plan characteristics | 168 |
| Tax Topics - Income Tax Act - Section 60 - Paragraph 60(j) | paraphrase | 57 |
30 October 2014 External T.I. 2013-0500491E5 - Pension from XXXXXXXXXX
Tax is withheld by the European Union on a pension received by a Canadian resident from an EU organization and which is exempt from national tax...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 126 - Subsection 126(1) | EU withholding does not qualify as state tax | 124 |
| Tax Topics - Income Tax Act - Section 126 - Subsection 126(3) | pension income not employment income | 76 |
Subparagraph 110(1)(f)(ii)
Administrative Policy
11 October 1991 and 21 January 1992 T.I. (Tax Window, No. 11, p. 18, ¶1519)
A New Brunswick worker who (following the payment of worker's compensation benefits for 24 consecutive months) has an amount equal to 80% of the...
Paragraph 110(1)(j) - Home relocation loan
Administrative Policy
25 May 1994 T.I. 941081 (C.T.O. "Home Relocation Loans")
Where an employee in receipt of a home relocation loan is transferred again and pays off the first loan, and receives another loan which will...
27 July 1989 T.I. (Dec. 89 Access Letter, ¶1049)
An employee is entitled to a deduction for a reimbursement by the employer of interest cost on a loan or mortgage taken out from a related party...
Subsection 110(1.1) - Election by particular qualifying person
Administrative Policy
7 December 2015 External T.I. 2015-0585171E5 F - 7(1)(b) benefit and 110(1.1) election
On the acquisition of all the shares of a CCPC (the “Corporation”) by an arm’s length third party, it also acquired all of the stock options...
4 May 2015 External T.I. 2013-0484181E5 - 7(1)(e) benefit and 110(1.1) election
Can an employer make the s. 110(1.1) election where s. 7(1)(e) deems a deceased employee to have received an employment benefit in the year of...
11 December 2012 External T.I. 2011-0423441E5 F - Options d'achat d'actions et décès
In response to a question on the consequences when a deceased individual owned options to acquire the shares of a public company, CRA stated...
Subsection 110(1.4) - Replacement of home relocation loan
Administrative Policy
27 July 1989 T.I. (Dec. 89 A.L.)
S.110(1.4) permits a taxpayer to replace a home relocation loan with a new loan, but prohibits him from extending the five-year period in which...
Subsection 110(1.5) - Determination of amounts relating to employee security options
Administrative Policy
13 January 1993 External T.I. 5-923395
"it is our view that where a corporation's existing capital structure provides for it, the issuance of additional shares by the corporation would...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - 101-110 - Section 110 - Subsection 110(1) - Paragraph 110(1)(d) | 61 |
Paragraph 110(1.5)(a)
See Also
Ferlaino v. The Queen, 2016 TCC 105 (Informal Procedure)
Smith J rejected arguments of the taxpayer that the computation of his s. 7(1)(a) benefits on exercising options on the shares of the listed U.S....
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 7 - Subsection 7(1) - Paragraph 7(1)(a) | exercise price of employee stock options to be translated at the exercise-date spot rate | 215 |
| Tax Topics - Income Tax Act - Section 261 - Subsection 261(2) | exercise price of employee stock options to be translated at the exercise-date spot rate | 115 |
Subsection 110(1.8) - Conditions for subsection (1.7) to apply
Articles
Steve Suarez, Firoz Ahmed, "Public Company Non-Butterfly Spinouts", 2003 Conference Report, c. 32.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 55 - Subsection 55(2) | 0 | |
| Tax Topics - Income Tax Act - Section 84 - Subsection 84(2) | 0 |
Subsection 110(2) - Charitable gifts
Cases
Aubry v. The Queen, 76 DTC 6343, [1976] CTC 598 (FCTD)
A member of the Society of Jesus who had taken the vow of poverty was not entitled to the deduction because he paid some of his expenses directly...
Administrative Policy
11 July 1991 T.I. (Tax Window, No. 6, p. 13, ¶1348)
RC will allow a taxable benefit under s. 6(1)(a) to be deducted under s. 110(2).
IT-86R "Vow of Perpetual Poverty".
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 118.1 - Subsection 118.1(1) - Total Charitable Gifts | 65 |
Articles
Strain, "Capital Gains Exemption: To Crystallize or not to Crystallize - Emerging Income Tax Issues", 1991 Conference Report, p. 8:7.
Subsection 110(2.1) - Charitable donation — proceeds of disposition of employee option securities
Administrative Policy
6 December 2016 External T.I. 2015-0605971E5 - Paragraph 110(1)(d.01) deduction
Would a taxpayer be entitled to the s. 110(1)(d.01) deduction by virtue of s. 110(2.1) if he directed the approved broker to dispose of his shares...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 7 - Subsection 7(1.31) | s. 7(1.31) election also effective where a broker sale under s. 110(2.1) | 152 |
8 October 2010 Roundtable, 2010-0370481C6 F - Don, vente d'actions acquises en vertu 7(1)
Where there is a gift of the proceeds from a short sale of optioned shares on the same day as the option is exercised in a cashless exercise, the...
Articles
Maureen Y. Berry, "Properly Structured Charitable Donations May Mitigate Source Deduction Woes", Taxation of Executive Compensation and Retirement, 2011, p. 1367
There is a source deduction advantage to a broker-directed donation of the proceeds received upon the disposition of optioned securities as...
Paragraph 110(d.1)
Administrative Policy
30 August 2000 External T.I. 2000-003252
Contrary to the earlier position in an 18 October 1999 TI (No. 991926), the Agency now is of the view "that paragraph 110(1)(d.1) of the Act could...