{"id":712,"date":"2013-06-03T15:24:51","date_gmt":"2013-06-03T15:24:51","guid":{"rendered":"https:\/\/thor.ca\/\/blog\/?p=712"},"modified":"2025-02-12T13:29:31","modified_gmt":"2025-02-12T21:29:31","slug":"cra-says-generally-no-wht-arises-when-canco-reimburses-parent-under-employee-compensation-plan","status":"publish","type":"post","link":"https:\/\/www.thor.ca\/blog\/2013\/06\/cra-says-generally-no-wht-arises-when-canco-reimburses-parent-under-employee-compensation-plan\/","title":{"rendered":"CRA says generally no WHT arises when Canco reimburses Parent under employee compensation plan"},"content":{"rendered":"<p>In <a href=\"http:\/\/thor.ca\/blog\/wp-content\/uploads\/2013\/06\/2010-0356401E5.pdf\">2010-0356401E5<\/a> (released last week), the Canada Revenue Agency (CRA) Rulings Directorate considered a case where a Canadian company in the group (Canco) reimbursed the foreign parent (public) company in the group (Parent) in respect of both options and shares awarded by Parent to Canco\u2019s employees, under the group\u2019s long term employee incentive plan.   The amount of Canco\u2019s reimbursement was equal to the fair value of the shares or options awarded at the date of grant (net of any exercise price payable by the employee).  Canco did not deduct this reimbursement in computing its income (s. 7(3)(b)).  The Rulings Directorate said that Canco\u2019s reimbursement generally could not be considered \u201ca benefit\u201d conferred on Parent, for purposes of the withholding tax provisions (s. 15(1), s. 246(1)(b), and s. 214(3)(a)).  However, upon audit, the CRA may review the method used to compute the fair value of the option or share awards.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In <a href=\"http:\/\/thor.ca\/blog\/wp-content\/uploads\/2013\/06\/2010-0356401E5.pdf\">2010-0356401E5<\/a> (released last week), the Canada Revenue Agency (CRA) Rulings Directorate considered a case where a Canadian company in the group (Canco) reimbursed the foreign parent (public) company in the group (Parent) in respect of both options and&hellip;<\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"class_list":["post-712","post","type-post","status-publish","format-standard","hentry","category-corporate-tax"],"_links":{"self":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts\/712","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/comments?post=712"}],"version-history":[{"count":1,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts\/712\/revisions"}],"predecessor-version":[{"id":2768,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts\/712\/revisions\/2768"}],"wp:attachment":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/media?parent=712"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/categories?post=712"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/tags?post=712"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}