The applicant employer appealed an order to pay under the Employment Standards Act and paid the required monies into trust.
Pending the appeal, the employer issued a T4 slip to the employee for the trust monies, claiming it was a 'grey area' under the Income Tax Act.
The Board noted that this arrangement prejudiced the employee, who might have to pay tax on monies not yet received, while benefiting the employer.
The Board warned the employer that unless it obtained a written ruling from Revenue Canada clarifying its obligations, if the employee is forced to pay tax on the trust monies before the hearing, the Board would likely deem the issuance of the T4 slip as an admission that the wages are owed and terminate the appeal.