Table Of Content

Canadian Income Tax Law Cases, Text, and Materials Volume II David G. Duff Faculty of Law University of Toronto 2001 BOW LASRr) I Pf l i0 SEP - 3 2001 F*cuuy flf LAW H.NiVg.SiTr OF TOMf f) Canadian Income Tax Law: Cases, Text, and Materials Volume II David G. Duff Faculty of Law University of Toronto 2001 Digitized by the Internet Archive in 2018 with funding from University of Toronto https://archive.org/details/canadianincometa02dufM Table of Contents Part II - Computation of Income or Loss 237 Chapter 4 Office or Employment 241 A. Introduction 241 B. Characterization 242 1. Employees versus Independent Contractors 243 2. Incorporated Employees 257 (1) Judicial Anti-Avoidance Doctrines 258 (2) Statutory Anti-Avoidance Rules 266 (a) Indirect Receipt 266 (b) Personal Services Business 273 C. Inclusions 284 1. Remuneration 285 (1) Gratuitous Payments 288 (2) Inducement Payments 296 (3) Strike Pay 302 (4) Damage Payments 310 2. Benefits 320 (1) General Rule 320 (a) Characterization as a Benefit 321 (b) Relationship to Office or Employment 345 (c) Valuation 352 (2) Specific Rules 363 (a) Automobile Benefits 363 (i) Standby Charge 363 (ii) Operating Expenses 369 (iii) Parking Benefits 370 (b) Insurance Benefits 373 (c) Interest-Free and Low-Interest Loans 382 (d) Forgiveness of Debt 389 (e) Benefits in Respect of a Housing Loss 394 (e) Options to Acquire Securities 395 (i) Acquisition of Securities 396 (ii) Transfer or Disposition of Rights 403 3. Allowances 413 (1) Characterization 413 (2) Exceptions 420 i 4. Statutory Exclusions 427 (1) Employment at Special Work Site or Remote Location 427 (a) Special Work Site 427 (b) Remote Work Location 434 (2) Disability-Related Employment Benefits 440 D. Deductions 441 1. Travelling Expenses 442 (1) Travel in the Course of an Office or Employment 444 (2) Ordinarily Required to Carry on Duties Away from 449 Employer’s Place of Business or in Different Places (3) Required Under Contract of Employment to Pay Travel 456 Expenses (4) Receipt of Travel Allowance 467 2. Meals 474 3. Legal Expenses 479 4. Professional Membership Dues 485 5. Union Dues 495 6. Cost of Supplies Consumed 501 7. Office Rent 509 8. Salary of Assistant or Substitute 514 9. Expenses of Salespersons 517 (1) Employed in Connection with Selling Property or 518 Negotiating Contracts (2) Required Under Contract of Employment to Pay own 521 Expenses (3) Ordinarily Required to Carry on Duties Away from 524 Employer’s Place of Business (4) Remuneration 529 (5) Receipt of Travel Allowance 532 10. Expenses of Musicians and Artists 538 E. Timing Issues 539 1. Inclusions 540 (1) Receipt and Enjoyment 541 (2) Deferred Income 553 (a) Registered Pension Plans 553 (b Deferred Profit Sharing Plans 554 (c) Salary Deferral Arrangements 555 2. Deductions 559 ii