I-3 - Taxation Act

Section 890.4 Disposition versions

2006-03-01

890.4. For the purposes of the provisions of this Part relating to retirement compensation arrangements, where a corporation that at any time carried on a personal services business or an employee of the corporation, enters into a plan or arrangement with a person or partnership, referred to in this section as the “employer”, to which the corporation renders services, and where the plan or arrangement provides for benefits to be received or enjoyed by any person on, after or in contemplation of the cessation of, or any substantial change in, the services rendered by the corporation, or an employee of the corporation, to the employer, the following rules apply:

(a)  the employer and the corporation are deemed to be an employer and employee, respectively, in relation to each other; and

(b)  any benefits to be received or enjoyed by any person under the plan or arrangement are deemed to be benefits to be received or enjoyed by the person on, after or in contemplation of a substantial change in the services rendered by the corporation.

1989, c. 77, s. 95; 1997, c. 3, s. 71.