Incentivizing employees is a critical component of most business strategies. Employers may implement arrangements for deferred cash bonuses, often subject to the satisfaction of certain criteria. From a tax perspective, the...more
Retirement compensation arrangements (RCAs) are, in appropriate circumstances, a useful tool for employers to provide supplemental pension benefits to employees, but such arrangements come at a cost of refundable tax under...more
Multinational corporations, cross-border investments and many other Canadian public and private enterprises, will likely soon face a new and complex interest expense deduction limitation in Canada....more
For many public corporations, employee stock options have historically represented the "holy grail" of equity-based employee compensation. While providing an opportunity for employees to share in their employer's growth in a...more
The Canada Emergency Wage Subsidy (CEWS) program is by now well-known. It was introduced by the federal government on March 15, 2020, and pays a qualifying employer adversely impacted by the COVID-19 pandemic up to 75 percent...more
November 20, 2020 Updates: Bill C-9, An Act to Amend the Income Tax Act (Canada Emergency Rent Subsidy and Canada Emergency Wage Subsidy) was given royal assent and comes into full effect on November 20, 2020. As per the...more
After almost a month of eager anticipation, the federal government has released draft legislation to institute the new Canada Emergency Rent Subsidy (CERS), replacing the now-expired Canada Emergency Commercial Rent...more
Many employers utilize formula-based appreciation rights (Appreciation Rights) as a mechanism to attract, retain and incentivize key employees. Particularly common amongst private corporations, Appreciation Rights generally...more
The Me Too movement of the last few years and recent worldwide protests sparked by George Floyd's killing have focused welcome attention on combatting gender and racial discrimination and harassment. A recent Tax Court of...more
One of the criticisms of the Canada Emergency Wage Subsidy (CEWS), as originally implemented, was that employers which acquired revenue-generating assets between the qualifying period and the historical comparison period...more
In the recent decision in Laliberté v Canada, 2020 FCA 97, [Laliberté] the Federal Court of Appeal confirmed that the $41.8-million costs of a shareholder's visit to outer space as a "space tourist" should be taxed as a...more
On July 17, 2020, in response to public consultations, the Department of Finance, introduced draft legislative proposals which, if implemented, would extend the Canada Emergency Wage Subsidy (CEWS) to December 19, 2020, and...more
The World Health Organization declared the COVID-19 outbreak a pandemic on March 11, 2020, and many employers responded by requiring or encouraging their employees to work from home. Even as Canada commences "reopening", it...more
The COVID-19 pandemic has resulted in the imposition of travel restrictions by governments and businesses. While such restrictions are no doubt valuable in "flattening the curve", they do, amongst other things, pose...more
The Canada Emergency Wage Subsidy (CEWS) was enacted, as amendments to the Income Tax Act (Canada) (ITA), on April 11, 2020, for the purposes of assisting employers in financial hardship due to the COVID-19 pandemic and of...more
The application portal for the Canada Emergency Wage Subsidy (CEWS), which pays employers impacted by the COVID-19 pandemic up to 75 percent of an eligible employee's remuneration for 12 weeks (to a maximum of $847 per week),...more
On April 21, 2020, the federal government announced that applications for the Canada Emergency Wage Subsidy (CEWS) will open on April 27, and provided details on the application process as well as information on (and access...more
The COVID-19 pandemic has had an unprecedented impact on the financial markets and stock prices. Through the spring of 2020, share prices have experienced extreme volatility and, in some cases, have traded at unforeseen...more
On Saturday April 11, 2020, the COVID-19 Emergency Response Act, No. 2 received Royal Assent, thereby amending the Income Tax Act (Canada) to give effect to the Canada Emergency Wage Subsidy (CEWS) framework that the federal...more
While the immediate business disruptions resulting from the recent flooding in Southern Alberta have, to some extent, been dealt with, the hard work of rebuilding has only just begun. ...more
The Canadian Government has introduced new tax rules which may subject corporate contractors to a 13% increase in the rate of income tax payable. These rules received Royal Assent on June 26, 2013 and are effective for all...more