Blanchard v. Canada
A-1532-92
Linden J.A.
5/6/95
11 pp.
Appeal from Trial Judge decision housing buy-out payment not in any way connected to employee's employment -- Issue whether amount received as buy-out of respondent's rights pursuant to employee housing arrangement taxable as income -- Income Tax Act, s. 6 designed to supplement and broaden s. 5 notion of taxable employment income-S. 6(1)(a) provision embracing all types of benefits imaginable; addition of phrases "in the course of", "by virtue of" to phrase "in respect of" emphasizing only smallest connection to employment required to trigger operation of section -- Two exceptions to s. 6(1)(a) provision: (1) reimbursements for costs actually incurred; and (2) benefit wholly "extraneous" or "collateral" to employment, i.e. no connection or link to employment relationship -- Housing policy designed to assist relocation of employees to remote developing region terminated; employer offering program participants buy-out arrangement whereby participants receiving payment equivalent to estimated real estate commission payable-Although payment arising from real estate transaction, transaction not totally divorced from employment relationship of taxpayer as required for s. 6(1)(a) exception -- Source of payment not determinative; s. 6(1)(a) requirement satisfied if some connection between receipt of payment and recipient's employment -- Receipt of money constituting benefit; not mere reimbursement of costs incurred -- Incidental benefit to respondent's family not making payment anything other than benefit -- Payment taxable under s. 6(1)(a) -- S. 6(3) also covering present circumstances as payment in satisfaction of obligation arising out of agreement between respondent and payer either at time of or before period of employment; payment also taxable pursuant to s. 6(3) -- Appeal allowed -- Income Tax Act, S.C. 1970-71-72, c. 63, s. 6(1)(a) (as am. by S.C. 1980-81-82-83, c. 140, s. 1), 6(3).