CRA reiterated its statements in 2020-0850281I7 (see also 2020-0841961I7) that it will no longer consider any ruling requests pertaining to whether any given formula-based appreciation plan is a a salary deferral arrangement, unless the plan is a plan described in ATR-45 ((re share appreciation rights plans), or the ruling request is about whether one of the exceptions, listed in the SDA definition, applies, given that such a determination should be made on an annual basis (so that all the relevant circumstances cannot be ascertained at the time of a ruling request) and that such plans are “vulnerable to manipulation.”
CRA went on to note that it accepts that many formula-based appreciation plans are not SDAs where the underlying formula closely approximates the FMV of the relevant shares of the corporate employer over the duration of the plan.