Income Tax Act — I-3.3 6
es, the amount that would otherwise be determined under subsection 6(2) as a reasonable standby charge shall, at the option of the employer, be computed as if (d) the reference in the formula in subsection 6(2) to “2%” were read as a reference to “1 1/2%”, and (e) the cost to the employer of the automobile were the greater of (i) the quotient obtained by dividing (A) the cost to the employer of all new automobiles acquired by the employer in the year for sale or lease in the course of the employer’s business by (B) the number of automobiles described in clause 6(2.1)(e)(i)(A), and (ii) the quotient obtained by dividing (A) the cost to the employer of all automobiles acquired by the employer in the year for sale or lease in the course of the employer’s business by (B) the number of automobiles described in clause 6(2.1)(e)(ii)(A). COVID-19 — automobile operating expense benefit (2.2) If a taxpayer met the condition in subparagraph (iv) of the description of A in paragraph (1)(k) for the 2019 taxation year in respect of the use of an automobile made available to the taxpayer, or to a person related to the taxpayer, by an employer (within the meaning assigned by subsection (2)), then for the purpose of applying paragraph (1)(k) in respect of an automobile provided by that employer in 2020 or 2021 (referred to in this subsection as the “relevant year”), the amount determined for A in paragraph (1)(k) in respect of the automobile for the relevant year is deemed to be the lesser of (a) ½ of the amount determined under subparagraph (1)(e)(i) in respect of the automobile for the relevant year, and (b) the amount determined under subparagraph (v) of the description of A in paragraph (1)(k) in respect of the automobile for the relevant year. COVID-19 — reasonable standby charge (2.3) A taxpayer is deemed to meet the condition in subparagraph (a)(ii) of the description of A in subsection (2) in respect of an employer (within the meaning assigned by subsection (2)) for the 2020 or 2021 taxation year if the taxpayer met the conditions in subparagraphs (a)(i) and (ii) of the description of A in subsection (2) for the 2019 taxation year in respect of an automobile made available to the taxpayer, or to a person related to the taxpayer, by that employer. Payments by employer to employee (3) An amount received by one person from another (a) during a period while the payee was an officer of, or in the employment of, the payer, or (b) on account, in lieu of payment or in satisfaction of an obligation arising out of an agreement made by the payer with the payee immediately prior to, during or immediately after a period that the payee was an officer of, or in the employment of, the payer, shall be deemed, for the purposes of section 5, to be remuneration for the payee’s services rendered as an officer or during the period of employment, unless it is established that, irrespective of when the agreement, if any, under which the amount was received was made or the form or legal effect thereof, it cannot reasonably be regarded as having been received (c) as consideration or partial consideration for accepting the office or entering into the contract of employment, (d) as remuneration or partial remuneration for services as an officer or under the contract of employment, or (e) in consideration or partial consideration for a covenant with reference to what the officer or employee is, or is not, to do before or after the termination of the employment. Amount receivable for covenant (3.1) If an amount (other than an amount to which paragraph (1)(a) applies because of subsection (11)) is receivable at the end of a taxation year by a taxpayer in respect of a covenant, agreed to by the taxpayer more than 36 months before the end of that taxation year, with reference to what the taxpayer is, or is not, to do, and the amount would be included in the taxpayer’s income for the year under this Subdivision if it were received by the taxpayer in the year, the amoun