CTF - 1990 Conference Report
QUESTION I-2
EMPLOYEE BENEFITS
In the case of Splane v. The Queen, 90 DTC 6442, the Court ruled that an amount paid to a transferred employee to reimburse him for higher mortgage interest rate costs incurred on the purchase of a new home was not a taxable benefit to the employee.
What is the Department's position with respect to payments of this nature?
DEPARTMENT'S POSITION
It is the Department's position that such mortgage interest differential payments represent payments made in respect of personal expenditures and are therefore taxable benefits for the purposes of paragraph 6(1)(a) of The Income Act. Accordingly, the Department has appealed the Splane decision to the Federal Court of Appeal.
Canadian Tax FoundationNovember 1990Section 24M. Eisner