The appellant employer received tips from customers at banquets and distributed them to its employees pursuant to a collective agreement.
The Minister of National Revenue assessed the employer for unemployment insurance premiums on these tips.
The employer appealed, arguing that the tips were paid by customers, not the employer, and thus were not remuneration under section 68 of the Unemployment Insurance Act, 1971.
The Supreme Court of Canada held that section 66 of the Act requires premiums to be calculated based on 'insurable earnings', which includes tips distributed by the employer.
The appeal was dismissed.
