Income Tax Regulations — 8507
8507 (1) For the purposes of paragraph (b) of the definition compensation in subsection 147.1(1) of the Act, there is prescribed for inclusion in the compensation of an individual from an employer for a calendar year after 1990 (a) where the individual has a qualifying period in the year with respect to the employer, the amount that is determined under subsection (2) in respect of the period; and (b) where the individual has a period of disability in the year, the amount that would be determined under paragraph (2)(a) in respect of the period if the period were a qualifying period of the individual with respect to the employer. Additional Compensation in respect of Qualifying Period (2) For the purposes of paragraph (1)(a) and subsection (5), the amount that is determined in respect of a period in a calendar year that is a qualifying period of an individual with respect to an employer is the lesser of (a) the amount, if any, by which (i) the amount that it is reasonable to consider would have been the remuneration of the individual for the period from the employer if the individual had rendered services to the employer throughout the period on a regular basis (having regard to the services rendered by the individual to the employer before the complete period of reduced pay of which the period is a part) and the individual’s rate of remuneration had been commensurate with the individual’s rate of remuneration before the beginning of the complete period of reduced pay exceeds (ii) the remuneration of the individual for the period from the employer, and (b) the amount determined by the formula (5 + A + B - C) × D where A is the lesser of 3 and the amount that would be the cumulative additional compensation fraction of the individual with respect to the employer, determined to the time that is immediately before the end of the period, if the individual’s only qualifying periods had been periods that are also periods of parenting, B is (i) if no part of the period is a period of parenting, nil, and (ii) otherwise, the lesser of (A) the amount, if any, by which 3 exceeds the amount determined for A, and (B) the ratio of (I) the amount that would be determined under paragraph (a) if the remuneration referred to in subparagraphs (a)(i) and (ii) were the remuneration for such part of the period as is a period of parenting to (II) the amount determined for D, C is the cumulative additional compensation fraction of the individual with respect to the employer, determined to the time that is immediately before the end of the period, and D is the amount that it is reasonable to consider would have been the individual’s remuneration for the year from the employer if the individual had rendered services to the employer on a full-time basis throughout the year and the individual’s rate of remuneration had been commensurate with the individual’s rate of remuneration before the beginning of the complete period of reduced pay of which the period is a part. Qualifying Periods and Periods of Parenting (3) For the purposes of this section, (a) a period in a calendar year is a qualifying period of an individual in the year with respect to an employer if (i) the period is an eligible period of reduced pay or an eligible period of temporary absence of the individual in the year with respect to the employer, (ii) either (A) lifetime retirement benefits are provided to the individual under a defined benefit provision of a registered pension plan (other than a plan that is, in the year, a specified multi-employer plan) in respect of the period, or (B) contributions are made by or on behalf of the individual under a money purchase provision of a registered pension plan (other than a plan that is, in the year, a specified multi-employer plan) in respect of the period, pursuant to terms of the plan that apply in respect of periods that are not regular periods of employment, (iii) the lifetime retirement benefits or the contributions, as the case may be, exce