Morrissette v The Queen, 2012 TCC 37

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Determinations by Employers as to taxability – Are they binding on the employee?

Morissette v The Queen, 2012 TCC 37

At issue were two points, but only the question as to whether the employer’s determination, via inclusion in a T4 slip, that a certain amount paid to the employee is taxable, is determinative of the question of taxability or not.

The TCC held that an employer’s indication, on a T4 slip, that certain amounts paid to the employee are taxable is not determinative of the issue of taxability.  The true nature of the amount must be determined by looking at the relevant circumstances of the payment.