2 total
Employee stock options gifted to charity are taxable at fair market value.
The appellants donated stock options to registered charities and claimed corresponding tax credits in their returns.
The tax authority reassessed the taxpayer to include the fair market value of the gifted stock options in his taxable income pursuant to ss. 50 and 422(c)(ii) of the Taxation Act.
The Court of Québec vacated the reassessments but the Quebec Court of Appeal restored them.
The Supreme Court of Canada unanimously affirmed the Court of Appeal, holding that s. 422(c)(ii) applies to the disposition of stock options by gift and that Division VI of the Taxation Act does not constitute a complete code that excludes the application of s. 422.
Tax Court enforces written April 2019 settlement agreement, dismissing appellant's claim of an earlier global settlement.
The appellant and respondent brought cross-motions regarding a settlement agreement in a GST appeal.
The appellant argued a binding agreement was reached in March 2019 for a global settlement of $550,000, while the respondent sought to enforce a written Settlement Agreement signed in April 2019 based on specific ITC adjustments.
The Tax Court of Canada found the April 2019 Settlement Agreement was the only valid agreement between the parties.
The appellant's motion was dismissed and the respondent's motion to confirm the reassessments and dismiss the appeal was allowed.
