,canada ,cu/oms                       #a
& ,rev5ue ,ag5cy

          ,9t]pret,n ,bullet9
    
,subject3 ,9come ,tax ,act
  ,vac,n ,pay ,tru/s ,e/abli%$ "u
  ,collective ,agree;ts
,numb]3 ,,it-#chi;,r
,date3 ,augu/ #cj1 #aihe
,ref];e3 ,p>agraphs #adi7#a77y7 & 7k7
  7al sec;n #e & p>agraph #ah7#a77a77

  ,? bullet9 c.els & replaces ,,it-#chi
dat$ ,augu/ #ae1 #aigg s9ce p>agraph
#adi7#a77y7 0 made e6ective =! #aigb
& subsequ5t tax,n ye>s4

#a4 ,! f$]al gov]n;t & all (! prov9ces &
  t]ritories h pass$ legisl,n provid+ =!
  pay;t 0employ]s ( sal>ies or wages
  6employees 7o!r ?an ^? except$ 0!
  legisl,n7 = p]iods :ile ! employees >e
  on vac,n4
                                      #a
              ,,it-#chi;,r           a#a
#b4 ,collective agree;ts 2t an employ]
  7or an associ,n ( employ]s7 &
  employees 7or _! lab\r organiz,n7 may
  require ! employ] 6make p]iodic
  3tribu;ns 6a tru/ on a3.t ( vac,n
  cr$its e>n$ 09dividuals4 ,! am.t (!
  3tribu;n is det]m9$ 0! agree;t z
  revis$ f "t 6"t b m/ meet any m9imums
  e/abli%$ "u ! relevant legisl,n4 ,"u !
  t]ms (a typical vac,n pay plan !
  tru/ees manage ! tru/ prop]ty & make
  pay;ts at specifi$ or det]m9a# "ts
  69dividual employees on a3.t ( vac,n
  cr$its a3umulat$ 0!m4 ,n"o (! tru/
  prop]ty1 :e!r z 6capital or 9come1 may
  2come paya# 6employees 2f ! "t det]m9$
  "u ! plan = mak+ pay;ts 6!m4
#c4 ,p>agraph #adi7#a77y7 applies 6a
  tru/ e/abli%$ pursuant 6! t]ms (a
  collective agree;t 2t an employ] or an
  associ,n ( employ]s & employees or _!
  lab\r organiz,n =! sole purpose (
  provid+ =! pay;t ( vac,n or holi"d
  pay4 ,no "p (! prop]ty (! tru/1     #b
              ,,it-#chi;,r           b#a
  af pay;t ( xs r1sona# exp5ses1 may 2
  availa# af #aihj or 2 pd af ,decemb]
  #aa1 #aigi1 6any p]son 7o!r ?an a tax-
  exempt lab\r organiz,n z describ$ 9
  p>agraph #adi7#a77k77 o!rwise ?an z a
  3sequ;e ( 2+ an employee or an heir or
  a legal repres5tative (! employee4 ,z
  ! sole purpose ( s* a plan m/ 2 !
  pay;t ( vac,n or holi"d pay1 am.ts pd
  96! tru/ w norm,y 2 4burs$ 0! tru/ee
  no lat] ?an 9 ! ye> foll[+ receipt4
--------------------------------------#b
#d4 ,af #aigi1 a vac,n pay tru/ t does n
  meet ! require;ts ( p>agraph
  #adi7#a77y7 falls )9 ! employee b5efit
  plan def9i;n 3ta9$ 9 subsec;n
  #bdh7#a74 ,! tax result 6! employ]1
  employee & tru/ee ( an employee b5efit
  plan is expla9$ 9 ,,it-#ejb4 ,prior
  6#aihj1 s* a tru/ 0 subject 6!
  provi.ns ( subdivi.n ;k ( ,divi.n ;,b
  ( ,"p ;,,i (! ,act4

                                      #c
        ,tax ,result 6,qualify+      a#b
          ,tru/ 7p>agraph #e7
    
#e4 ,no tax is paya# "u ,"p ;,i on !
  9come (a tru/ t meets ! 3di;ns
  describ$ 9 #c abv4 ,h["e1 pursuant
  6subsec;n #bjd7#a7 (! ,regul,ns1 !
  vac,n pay tru/ is / requir$ 6file a
  ,t#c ,9=m,n ,return & ,9come ,tax
  ,return ea* ye> & %d 9dicate "!on t x
  is non-taxa# "u p>agraph #adi7#a77y74

       ,tax ,result 6,employ] "u
     ,qualify+ ,tru/ 7p>agraph #f7
    
#f4 ,an employ] :o -putes 9come on an
  a3rual basis may claim a deduc;n =
  employees' vac,n pay cr$its =! p]iod 9
  : ! liabil;y >ose ev5 ?\< pay;t 6!
  tru/ is n made until af ! 5d (! p]iod4
  ,)hold+ on a3.t ( tax1 ,quebec or
  ,canada ,p5.n ,plan 3tribu;ns &
  unemploy;t 9sur.e premiums is requir$
  at ! "t ! pay;t is made 6! tru/ z ?\<
  ! am.ts _h be5 pd directly 6!       #d
              ,,it-#chi;,r           b#b
  employees4 ,:e!r x is ! net am.t af
  deduc;ns : is pd 96! tru/1 or ! gross
  am.t )! prescrib$ deduc;n 2+ )held f
  regul> pay1 is det]m9$ 0! provi.ns (!
  plan4 ,9 ei ev5t ! employ] 9cludes !
  gross vac,n pay 3tribu;ns made dur+ !
  ye> 9 respect ( ea* employee z an
  ele;t ( gross wages on =ms ,t#d
  ,summ>y & ,t#d ,supple;t>y4

      ,tax ,result 6,employee ,"u
       ,qualify+ ,tru/ 7p>agraphs
                 #g-h7
    
#g4 ,an employ]'s 3tribu;ns 6! tru/ 9
  respect ( vac,n cr$its (a "picul>
  employee >e 9clud$ 9 ! employee's
  9come 9 ! ye> dur+ : ! 3tribu;n is
  made4 ,subsequ5t pay;ts 0! tru/ \ ( ^?
  3tribu;ns >e rcvd 0! employee free (
  tax4
#h4 ,am.ts rcvd 0an employee \ ( 9come
  (! tru/ >e br"\ 969come z vac,n pay
  s9ce !y >e rcvd 0virtue (!          #e
              ,,it-#chi;,r           c#b
  employ;t 3tract & no pay;ts o!r ?an
  vac,n pay may 2 made 6an employee if !
  tru/ is 6rema9 qualifi$ "u p>agraph
  #adi7#a77y74 ,! s\rce (! tru/ funds
  us$ 6pay s* am.ts does n a6ect ?
  "*iz,n &! tru/ is requir$ 6)hold am.ts
  on a3.t ( 9come tax & 6file ! relat$
  ,t#d 9=m,n returns 7r ?an =ms ,t#c
  ,supple;t>y7 9 respect (! am.ts pd4
  ,s* pay;ts mi<t 2 made ": vac,n
--------------------------------------#c
  pay is ord9>ily met 9 "p \ ( 9come
  e>n$ 0! tru/ or ": an employ] 7"?
  bankruptcy7 fails 6make 3tribu;ns 6!
  tru/ = employees' vac,n cr$its e>n$4

       ,o!r ,>range;ts 7p>agraphs
                 #i-aj7
    
#i4 ,": ! collective agree;t provides t
  ! employ] make 3tribu;ns 6an 5t;y o!r
  ?an a tru/1 e4g41 a cu/odian1 ! vac,n
  pay plan is an employee b5efit plan
                                      #f
              ,,it-#chi;,r           a#c
  subject 6! tax 3sequ;es \tl9$ 9
  ,,it-#ejb4
#aj4 ,": ! employ] pays vac,n pay
  directly 6employees1 :e!r or n
  pursuant 6a vac,n pay plan "u a
  collective agree;t1 s* pay;ts >e
  9clud$ 9 gross -p5s,n &1 if deducti#
  0! employ]1 >e deducti# 9 ! ye> pd 6or
  e>n$ 0! employees4 ,an employee
  9cludes s* am.ts 9 9come f an (fice or
  employ;t 9 ! tax,n ye> 9 : !y >e rcvd4
  ,z a -pon5t ( gross -p5s,n1 vac,n pay
  is subject 69come tax )hold+ at s\rce1
  ,quebec or ,canada ,p5.n ,plan
  3tribu;ns & unemploy;t 9sur.e premiums
  & is report$ 9 =ms ,t#d ,summ>y & ,t#d
  ,supple;t>y z "p ( 8,total ,e>n+s04






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