Office & Employment

Question 1

Sections? Purposes?

Answer 1

Under S 5-8

5-7 included in income
8 - deductions

Section 5 - wages, salaries
Section 6 - benefits
Section 7 -stock

Question 2

Determine b/w Employee and Independent Contractor

Answer 2

Section 248 - employment definition

Weibe Doors - control, risk of loss, profit, ownership of tools, integral to overall business? Intention?

Cavanaugh - professionals vs sessionals. No single test to determine.

Curran - S 6(3) payments by employer to employee.

Question 3

Taxable Benefits (case law)

Answer 3

Section 6

Sorin - closet lodgings, not what was meant by the Act.
Savage - prize? Test whether the benefit had been conferred as an employee or as a person. If received or enjoyed in respect by virtue of office or employement then income.
S 56(1)(n) - scholarships, bursaries to be considered taxable
Laidler - christmas turkey? Received because of employment
Lowe - vacation, benefit of the employer.
Huffman - material benefit that confers an economic benefit to the employer?
Tennant - is it something that goes into your pocket or saves your pocket? Taxable benefit goes into your pocket, does not merely save it.
Ransom - loss of sale on home reimbursed by employer.
Phillips - new house clearly from employer, no personal element, put money into his pocket (acquired better asset)

Question 4

Valuing Benefits

Answer 4

General rule: FMV
How much would a willing buyer buy it for? How much did the employer pay for it? How much is the benefit to the TP?

Question 5

Allowances (section, what is it, case law)

Answer 5

Section 6 - fixed amount that is not accounted for by an employer and whose use is at the employee’s discretion.

6(1)(b) - allowances received in connection with office and employment be included in income

Campbell - allowance for gas use in work

Huffman - Reimbursement only given upon presentation of receipts (article 17.01)

Question 6

Deductions (section, things applicable & accompanying case law)

Answer 6

Has to be under section 8 to be deductible, if not there, not deductible (8(2)).

(b) legal expenses (conditional - wrongful termination)
(c) clergy expenses
(f) sales expenses
(h) travel expenses - Martyn - have to be away from municipality of employment and ordinarily carry on duties of office/employment
(i)(i) professional dues recognized by statute - Swingle - chemists have professional recognition
8(4) meals - required by duties away from municipality where employed
8(13) - principal workspace in the home (Prewer - cannot exceed income from year, only deduct less or equal to income)
67 Reasonable deductions.