The applicant sought summary judgment requiring his former employer to return amounts withheld as hypothetical tax from post‑retirement deferred compensation payments.
The dispute concerned whether stock‑based deferred compensation received after retirement retained its character as employment income and therefore remained subject to the employer’s contractual tax equalization policy for expatriate executives.
The court held that, under the employment contract and the Income Tax Act, deferred compensation arising from employment remains employment income regardless of when it is received.
Because the applicant had agreed that employment income, including stock‑based compensation, would be subject to hypothetical tax, the employer was entitled to continue applying the policy after retirement.
The motion and underlying claim were dismissed.
