Today we hosted the second Speakers Series Breakfast in the stately “Baordroom” on the mezzanine level at the Royal York hotel. The venue was great, and the speaker was even better. Samantha Prasad, a partner in the Tax group at Minden Gross LLP, spoke for about an hour on income splitting for families.

All equity-linked awards programs are options, right? Wrong. There are many different provisions within the tax act that an employer can use to compensate its employees. Click through below to understand how some basic awards are taxed, and how they might affect you if you are enrolled in programs like them.

Every year I try my best to make it through the budget, in order to get a jump on any new planning opportunities that may arise from what the government announces. This year was somewhat disspointing, but there were some changes of note for individual taxpayers.

Most people think the answer is no, but the recent financial crisis means that CRA, and especially the IRS, are getting quite strict with the definition of what qualifies as “working in the US.” In specific, TARP recipient companies should watch out, as the compensation of executive class employees will be under increasing scrutiny. Basically, beware of the Fifth Protocol!

In recent years, there have been many changes to employer paid expenses as a part of compensation packages. Below is a list of allowable perqs, including some commonly mismanaged rewards at which CRA does not look kindly.

Compensation strategies can help the senior manager defer tax and gain significant advantage. However, one must negotiate in advance to ensure that all options remain open to the executive during employment, during potential transition, and through to retirement. This must all be done with a careful eye not to go offside the Salary Deferral Arrangement (SDA) rules.

The Revenue Canada Prescribed rate continues to rest at 1% for the time being. This means that there are some strong planning benefits that can arise from that low rate for employees in a position to negotiate compensation in the coming months.

In periods of financial turmoil, employees often face the loss of their employment. However, with interest rates particularly low, the commuted values of pensions may offer some attractive lump-sum benefits upon departure.