Merchant v. The Queen, 2009 DTC 282, 2009 TCC 31 -- summary under Subsection 5(1)

By services, 28 November, 2015

In finding that loans made to the taxpayer by his employer were employment income to him when received, Webb, J. stated (at para. 22):

"in a situation where a cheque is issued (or cash is dispersed) to an employee in relation to services that have been rendered and the transaction is labelled an advance or a loan but in reality the employee is only obligated to repay the amount, without interest, from subsequent salary or 'bonuses' paid by the employer, in my opinion, the real character of the amount received is that it is received as a payment of compensation and not a loan. There is no true intention that the employee will have to repay the amount from any source other than the future 'payments' to be made by the employer."

Topics and taglines
Tagline
advance is current remuneration if repayable only out of future earnings
Words and phrases
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
338077
Extra import data
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