,CANADA ,CU/OMS                       #A
& ,REV5UE ,AG5CY

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          ,9T]PRET,N ,BULLET9
    
,SUBJECT3 ,9COME ,TAX ,ACT
  ,D1? ,B5EFITS
,NUMB]3 ,,IT-#EJH;,R
,DATE3 ,FEBRU>Y #AB1 #AIIF
,REF];E3 ,SUBP>AGRAPH #EF7#A77A77;III7
  &! DEF9I;N ( 8D1? B5EFIT0 9 SUBSEC;N
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  ALL[.E10 & 8SUP]ANNU,N OR P5.N B5EFIT0
  9 SUBSEC;N #BDH7#A71 & SUBP>AGRAPH
  #EF7#A77A77;II77

               ,APPLIC,N
    
  ,? BULLET9 C.ELS & REPLACES ,,IT-#EJH1
,D1? ,B5EFITS--,CALCUL,N1 DAT$ ,JUNE
#CJ1 #AIHG4 ,X AL C.ELS ,,IT-#CJA1 ,D1?
,B5EFITS--,QUALIFY+ ,PAY;TS1 DAT$ ,APRIL
#F1 #AIGF4                            #A
                ,SUMM>Y              A#A
    
  ,! PURPOSE (! LEGISLATIVE PROVI.NS
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  ,? BULLET9 4CUSSES "S (! TYPES (
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EXPLA9$ 9 SITU,NS ": QUALIFY+ PAY;TS >E
MADE OV] M ?AN "O TAX,N YE> OR RCVD F M
?AN "O (FICE OR EMPLOY;T4







                                      #B
          ,4CUS.N & ,9T]PRET,N       B#A
    
#A4 ,9 ? BULLET91 ! T]M 8GROSS AM.T0 (A
  D1? B5EFIT M1NS ! AM.T OR AM.TS RCVD
  0ANY TAXPAY] 9 A TAX,N YE> ^U OR AF !
  D1? ( AN EMPLOYEE OR =M] EMPLOYEE 9
  RECOGNI;N ( T EMPLOYEE'S OR =M]
  EMPLOYEE'S S]VICE 9 AN (FICE OR
  EMPLOY;T4

  ,9 G5]AL T]MS1 A 8D1? B5EFIT0 IS !
  GROSS AM.T RCVD 0A TAXPAY] 9 A TAX,N
  YE> LESS AN AM.T ( UP 64#AJ1JJJ 7SEE
  #I 6#AB 2L7 & IS 9CLUD$ 9 ! RECIPI5T'S
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  ,Z DECID$ 0! ,TAX ,C\RT ( ,CANADA 9
  ,GES9A ,HILTEMANN V4 ,! ,QUE5
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                                      #C
              ,,IT-#EJH;,R           C#A
  DOES N APPLY 6NON-QUALIFY+ PAY;TS1 Z
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  RECOGNI;N (! EMPLOYEE'S S]VICE 9 AN
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              ,,IT-#EJH;,R           D#A
    4T9CTLY SEP>ATE F C]TA9 PLANS S* Z A
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--------------------------------------#B
  --PAY;TS 9 RECOGNI;N ( S]VICE ( AN
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         ,NON-,QUALIFY+ ,PAY;TS
    
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    L1VE2                             #E
              ,,IT-#EJH;,R           A#B
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  ,IF AN EMPLOYEE DIES :ILE / EMPLOY$ 0!
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              ,,IT-#EJH;,R           B#B
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                                      #G
       ,PUBLIC ,S]VANTS (! ,F$]AL    C#B
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      ,SUP]ANNU,N OR ,P5.N ,B5EFIT
    
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       ,CALCUL,N ,( ,D1? ,B5EFIT     D#B
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  --HAS RCVD S* AN AM.T2 &
--------------------------------------#C
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    0! SURVIV+ SP\SE4
  
  

                                      #I
      ,SOLE ,B5EFICI>Y IS N ,SP\SE   A#C
    
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  ,IF M ?AN "O P]SON RCVS A GROSS AM.T 9
  RESPECT (! SAME DEC1S$ EMPLOYEE1 !
  APPOR;N;T RULE 7SEE #AB & #AC 2L7
  APPLIES4





                                     #AJ
            ,M1N+ ( 8,SP\SE0         B#C
    
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    EMPLOYEE4
  



                                     #AA
         ,M ?AN ,"O ,SP\SE IS A      C#C
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  7B7 (! D1? B5EFIT DEF9I;N 7SEE #AC
  2L74 ,9 O!R ^WS1 ! 4#AJ1JJJ EXEMPT
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              ,,IT-#EJH;,R           D#C
  DIVID$ 2T ! RECIPI5TS 9 PROPOR;N 6!
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    ,B5EFICI>IES >E ,SP\SE &A ,P]SON
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                                     #AC
              ,,IT-#EJH;,R            #D
  --! AM.T DET]M9$ US+ ! =MULA3 ;,A
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    ":3
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      GROSS AM.T RCVD 0! 8SURVIV+
      SP\SE02
    ;,B EQUALS ! GROSS AM.T RCVD 0!
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  ,SEE ! EXAMPLE 9 #AF 2L =! CALCUL,N (
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  DEC1S$ EMPLOYEE74

      ,D1? ,B5EFIT ,PD OV] ,M ?AN
            ,"O ,TAX,N ,YE>
    
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  TAX,N YE>1 &! TOTAL GROSS AM.T PD 6ALL
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                                     #AD
              ,,IT-#EJH;,R           A#D
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  Z A 3SEQU;E (A D1?1 X MAY 2 NEC
  6REASSESS ! 9COME TAX RETURNS (
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  YE>S 9 RESPECT (! D1? 6REFLECT !
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  ,SEE ! EXAMPLE 9 #AF 2L4

    ,D1? ,B5EFIT ,RCVD F ,M ?AN ,"O
          ,(FICE OR ,EMPLOY;T
    
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  US$ 9 ! CALCUL,N (! ALL[A# REDUC;N Z
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              ,,IT-#EJH;,R           B#D
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  RECOGNI;N (! EMPLOYEE'S S]VICE F AN
  (FICE OR EMPLOY;T4

                ,EXAMPLE
    
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  D1? B5EFIT =A SURVIV+ SP\SE &A TAXPAY]
  :O IS N A SURVIV+ SP\SE4

  ,A SURVIV+ SP\SE &A * (A DEC1S$
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  PAY;TS 7SEE #C ABV7 F EMPLOY;T ;,X
  DUR+ YE> #A4 ,9 YE> #B1 ! SURVIV+
  SP\SE RCVS A GROSS AM.T ( 4#C1EJJ F
  EMPLOY;T ,Y4 ,Z A RESULT1 ! *'S 9COME
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  3SEQU;E (! PAY;T ( 4#C1EJJ 6! SURVIV+
  SP\SE 9 YE> #B4 ,! SURVIV+ SP\SE & *
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              ,,IT-#EJH;,R           C#D
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  #A & #B4

  ,CALCUL,N ( REDUC;NS3
  ,YE> #A
  ,SURVIV+ ,SP\SE3
  ,! .LESS] (3
    --! AM.T RCVD 9 YE> #A EQUALS
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      PREVI\S YE>S 74#J7 EQUALS
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  ,9 YE> #A1 ! EXEMPT POR;N (! GROSS
  AM.T (! D1? B5EFIT IS 4#E1JJJ4 ,! D1?
  B5EFIT REQUIR$ 6BE 9CLUD$ 9 ! 9COME (!
  SURVIV+ SP\SE = YE> #A IS 4#J4
--------------------------------------#E
  ,*3
  ,! .LESS] (3
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  ! EXCESS 74#AJ1JJJ M9US 4#E1JJJ7
    MULTIPLI$ 04#D1JJJ DIVID$ 04#D1JJJJ
    EQUALS 4#E1JJJ4
                                     #AG
              ,,IT-#EJH;,R           A#E
  ,9 YE> #A1 ! EXEMPT POR;N (! GROSS
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  B5EFIT REQUIR$ 6BE 9CLUD$ 9 ! 9COME (!
  * = YE> #A IS 4#J4

  ,YE> #B3
  ,! SURVIV+ SP\SE RCVS A GROSS AM.T (
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  REDUC;N = YE> #B IS Z FOLL[S3

  ,SURVIV+ ,SP\SE3
  ,! .LESS] (3
    --! AM.T RCVD 9 YE> #B EQUALS
      4#C1EJJ2 &
    --4#AJ1JJJ M9US ! GROSS AM.TS RCVD
      0! SP\SE 9 PRIOR YE>S 74#AJ1JJJ
      M9US 4#E1JJJ RCVD 9 YE> #A7 EQUALS
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  ,9 YE> #B1 ! EXEMPT POR;N (! GROSS
  AM.T (! D1? B5EFIT =! SP\SE IS
  4#C1EJJ4 ,! SP\SE DOES N 9CLUDE ANY
  D1? B5EFIT ON 8 OR H] 9COME TAX RETURN
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                                     #AH
              ,,IT-#EJH;,R           B#E
  ,*3
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  4#C1EJJ 6! SURVIV+ SP\SE 9 YE> #B4

  ,! REVIS$ MAXIMUM REDUC;N AVAILA# 6! *
  9 YE> #A WD 2 ! .LESS] (3
    --! AM.T RCVD 0! * 9 YE> #A EQUALS
      4#D1JJJ2 &
    --! EXCESS 74#AJ1JJJ M9US 4#H1EJJ
      RCVD 0! SP\SE 9 YE>S #A & #B7
      MULTIPLI$ 04#D1JJJ DIVID$ 04#D1JJJ
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  ,! *'S REVIS$ EXEMPT POR;N (! GROSS
  AM.T = YE> #A WD 2 4#A1EJJ4 ,"!=E1 ! *
  9CLUDES A D1? B5EFIT ( 4#B1EJJ
  74#D1JJJ GROSS AM.T--4#A1EJJ EXEMPT
  AM.T7 9 9COME 9 YE> #A4

  ,IF Y H ANY -;TS AB MATT]S 4CUSS$ 9 ?
BULLET91 PL1SE S5D !M TO3

                                     #AI
              ,,IT-#EJH;,R           C#E
  ,DIRECTOR1 ,TE*NICAL ,PUBLIC,NS
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  ,OTTAWA ,,ON
  ,K#A;,A #J;,L#H
--------------------------------------#F
    ,EXPLAN,N ( ,*ANGES = ,9T]PRET,N
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  ,! PURPOSE (! ,EXPLAN,N ( ,*ANGES IS
6GIVE ! R1SONS =! REVI.NS 6AN 9T]PRET,N
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A RESULT ( *ANGES 6! LAW1 Z WELL Z
*ANGES REFLECT+ NEW OR REVIS$ DE"P;TAL
9T]PRET,NS4




                                     #BJ
                ,OV]VIEW             A#F
    
  ,? BULLET9 D1LS )! CALCUL,N (! AM.TS
SUBJECT 6TAX : A TAXPAY] MAY RCV AF !
D1? ( AN EMPLOYEE 9 RECOGNI;N (!
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