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

          ,9t]pret,n ,bullet9
    
,subject3 ,9come ,tax ,act
  ,a?letes & ,play]s ,employ$
  0,football1 ,hockey & ,simil> ,clubs
,numb]3 ,,it-#afh;,r#c
,date3 ,may #ac1 #aiia
,ref];e3 ,sec;n #f 7subsec;n #b7#c71
  sec;ns #h1 #aae & #bab & p>agraphs
  #ah7#a77p7 & #abe7#g77d7 &! def9i;ns (
  8retire;t -p5s,n >range;t0 & 8sal>y
  def]ral >range;t0 9 subsec;n #bdh7#a77

               ,applic,n
    
  ,? bullet9 c.els & replaces ,9t]pret,n
,bullet9 ,,it-#afh;,r#b dat$ ,novemb]
#bh1 #aihd4 ,curr5t revi.ns >e designat$
0v]tical l9es4


                                      #a
                ,summ>y              a#a
    
  ,? bullet9 d1ls )! tax,n ( ,canadian
resid5t a?letes & play]s 7& prospective
a?letes & play]s7 employ$ 0profes.nal
sports clubs1 s* z football1 hockey &
simil> clubs t "picipate 9 l1gues hav+
regul>ly s*$ul$ games4 ,9 ? bullet91 ^!
9dividuals >e ref]r$ 6z 8play]s04 ,!
bullet9 4cusses ! items 6be 9clud$ 9 !
9come = tax purposes ( s* play]s &! tim+
& mann] ( ^! 9clu.ns1 z well z !
deductibil;y 0^! play]s ( c]ta9 exp5ses4
,! tax,n ( non-resid5t play]s is briefly
4cuss$4 ,f9,y1 ! bullet9 expla9s ! tax
tr1t;t applica# 6play]s :o rcv employ;t
9come "? a corpor,n r ?an f ! sports
club directly4

          ,4cus.n & ,9t]pret,n
    
#a4 ,= tax purposes1 a play]'s 9come f
  employ;t 9cludes any (! foll[+ items
  rcvd 9 respect ( employ;t3
                                      #b
             ,,it-#afh;,r#c          b#a
  7a7 sal>ies1 9clud+ 9come f p]sonal
    s]vice 3tracts1 7see #g 2l71
  7b7 bonuses--= gd p]=m.e1 = all/>
    rat+1 = sign+ 3tracts1 etc41
  7c7 fees--= promo;nal activities or
    o!r special s]vices p]=m$ on 2half
    (! club1
  7d7 liv+ & travell+ all[.es 7see #b
    2l71
  7e7 honor>ia1
  7f7 pay;t = "t lo/ f o!r employ;t1
  7g7 -mut+ exp5ses1
  7h7 free use ( automobiles1
--------------------------------------#b
  7i7 aw>ds--9clud+ ca% &! fair m>ket
    value ( bonds1 automobiles & o!r
    m]*&ise4
  7j7 pay;ts made 0a club on a play]'s
    2half t wd o!rwise 2 a non-deducti#
    exp5se 6! play]1 s* z ag5ts' fees1
    legal fees1 9come taxes1 f9es1 etc41
  7k7 o!r b5efits4
  
                                      #c
             ,,it-#afh;,r#c          a#b
#b4 ,play]s' liv+ & travell+ exp5ses t
  >e borne 0! club >e tr1t$ z foll[s3
  7a7 ,non-a3.ta# all[.es pd 6play]s1
    9clud+ ^? pd 9 ! tra9+ & try\t
    p]iod1 >e 9come 6! play] un.s !y >e
    exempt 0virtue (3
    7;i7 subp>agraphs #f7#a77b77;vii7 &
      7;vii4#a7 7see ! curr5t v].ns (
      ,,it-#ebb & ,,it-#bgb on ! subject
      ( travell+ exp5ses = employees71
      or
    7;ii7 ,subsec;n #f7#f7 7see al !
      curr5t v].n ( ,,it-#ia1 ,employ;t
      at ,special ,"w ,sites74
  ,": a non-a3.ta# all[.e is 9come 6a
  play]1 ! play] may deduct r1sona#
  exp5ses 6! ext5t t ! require;ts (
  p>agraph #h7#a77h7 >e met4

  7b7 ,reimburse;t (a play]'s prop]ly
    v\*]$ travell+ exp5ses 9curr$ =
    away-f-home games1 or any o!r bona
    fide club busi;s away f ! club's
    home base1 >e n 3sid]$ 6be        #d
             ,,it-#afh;,r#c          b#b
    9come 6! ext5t t ! exp5ses >e
    r1sona# 9 ! circum/.es4 ,simil>
    exp5ses pd directly 0! club >e al n
    3sid]$ 6be 9come (! play]4 ,h["e1
    am.ts pd 0! club 9 respect (! play]
    7or reimburs$ 6! play]7 = p]sonal
    travell+1 s* z = p]sonal vac,ns or =
    family memb]s1 >e 3sid]$ 6be 9come f
    ! play]'s employ;t4
  7c7 ,! value ( d9+ & dormitory
    facilities t >e availa# 6all play]s
    dur+ ! tra9+ & try\t p]iod >e n
    reg>d$ z 9come 6! play]s provid$ t !
    am.ts >e r1sona# 9 ! circum/.es4 ,":
    a play] lives 9 ! g5]al loc,n (!
    tra9+ & try\t camp1 &= p]sonal
    r1sons -mutes daily f home1 any
    all[.e pd 6! play] = travell+1 m1ls1
    etc41 w 2 3sid]$ 6be = p]sonal liv+
    exp5ses & w 2 9clud$ 9 ! play]'s
    9come2 ! employee w n 2 eligi#
    6claim exp5ses pursuant 6p>agraph
    #h7#a77h7 ag/ ? 9come4
                                      #e
             ,def]r$ ,9come           #c
    
#c4 ,a 3tract ( employ;t may /ate t "p
  (! play]'s remun],n w 2 paya# on a
  def]r$ basis1 ref]r+ ei 6a "p ( regul>
  sal>y1 or 6"s special am.t s* z an
  annual bonus4 ,def]r+ 7or advanc+7
  pay;ts s* z sal>y or bonus c a6ect !
  play]'s level ( 9come = tax purposes 9
  a ye>4 ,2c (! v>iety ( >range;ts t may
  2 made1 ea* case m/ 2 3sid]$
  sep>ately1 ) due reg>d 6! t]ms (!
  employ;t 3tract &( any tru/ or o!r
  agree;t 5t]$ 960ei "py pursuant 6t
  3tract1 9clud+ an employee b5efit
  plan4 ,plans or >range;ts 6def] !
  sal>y or wages (a profes.nal a?lete =
  s]vices z s* )a t1m t "picipates 9 a
  l1gue hav+ regul>ly s*$ul$ games >e
  exempt$ f ! rules 9 ! ,act applica# 6a
  8sal>y def]ral >range;t01 z def9$ 9
  subsec;n #bdh7#a74 ,s* plans or
  >range;ts w al 2 exclud$ f ! provi.ns
  9 ! ,act applica# 6a 8retire;t -p5s,n
  >range;t01 z def9$ 9 subsec;n       #f
             ,,it-#afh;,r#c          a#c
  #bdh7#a71 provid$1 9 ! case (a
  ,canadian t1m1 t ! cu/odian (! plan or
  >range;t is a tru/ -pany lic5s$ 6d
  busi;s 9 ,canada & c>ries on busi;s "?
  a fix$ place ( busi;s 9 ,canada4 ,9 s*
  cases1 ! plan or >range;t is tr1t$ z
  an employee b5efit plan2 see ! curr5t
  v].n ( ,,it-#ejb4
#d4 ,g5],y1 h["e1 ! play] %d 9clude
  def]r$ remun],n 9 9come =! ye> 9 : !
  play] actu,y or 3/ructively rcvs x1 r
  ?an =! ye> 9 : x 0 e>n$ b n rcvd4 ,":
  ! ye> ( 9clu.n 9 9come is af ! play]
  has c1s$ 6be employ$ 0a "picul> club1
  subsec;n #f7#c7 is applica#4 7,see !
  curr5t v].n ( ,,it-#aif47

             ,non-,resid5ts
    
#e4 ,": a play] or =m] play] is a non-
  resid5t or c1ses 6be a resid5t (
  ,canada & rcvs remun],n or def]r$
  remun],n on a3.t ( s]vices p]=m$ 9
  ,canada =a ,canadian club1 !        #g
             ,,it-#afh;,r#c          b#c
  play] w 2 lia# = tax on t 9come
  pursuant 6subsec;n #b7#c71 z calculat$
  "u sec;n #aae1 except ": ! pay;t is "o
  ( ^? specifi$ 9 sec;n #bab 6: ,"p
  ,,xiii tax is applica# 7= example1 a
  retir+ all[.e or def]r$ pr(it %>+ plan
  pay;ts74 ,non-resid5ts >e al lia#1
  0virtue ( p>agraph #aae7#b77c4#a71 =
  tax on pay;ts rcvd = agree+ 65t] 96a
  3tract = s]vices 6be p]=m$ 9 ,canada
  7i4e4 sign+ bonuses71 = "utak+ n 65t]
  96s* a 3tract ) ano!r "py or z
  remun],n = duties or s]vices 6be p]=m$
  9
--------------------------------------#d
  ,canada1 if ! am.t s rcvd is deducti#
  0! pay] 9 -put+ 9come = ,canadian
  9come tax purposes4 ,3sid],n m/ al 2
  giv5 6! v>i\s tax tr1ties ,canada has
  ) o!r c.tries4



                                      #h
           ,deduc;ns f ,9come        a#d
    
#f4 ,play]s employ$ 0sports clubs >e
  limit$ 6! same deduc;ns f employ;t
  9come z >e availa# 6any o!r employee
  0virtue ( sec;n #h4 ,= example1 f9es
  pd 0play]s p]son,y >e n deducti#4
  ,legal fees 9curr$ 9 ! negoti,n (
  play] 3tracts >e al n deducti# s9ce
  p>agraph #h7#a77b7 /ipulates t 6be
  deducti#1 ! fees m/ 2 9curr$ 9
  collect+ sal>y or wages [$ 0an employ]
  or =m] employ] or1 af #aihi1 pd
  6collect or e/abli% a "r 6s* am.ts4

       ,p]sonal ,s]vices ,busi;s
    
#g4 ,r ?an employ+ a play] directly1 a
  sports club or organiz,n may reta9 !
  s]vices (a corpor,n ) : ! play] is 9
  turn 5gag$ "u a p]sonal s]vice 3tract4
  ,9come f s* p]sonal s]vice 3tracts may
  2 report$ 0a corpor,n if ! s]vices >e
  9 fact provid$ "? ! corpor,n &
  docu;t>y evid;e supports t fact4    #i
             ,,it-#afh;,r#c          b#d
  ,s* 9come w 2 3sid]$ 6be 9come f a
  p]sonal s]vices busi;s c>ri$ on 0!
  corpor,n if x meets ! def9i;n (
  8p]sonal s]vices busi;s04 ,if x does1
  s* 9come is tax$ at full corporate
  rates4 7,if x does n1 x may qualify =!
  small busi;s deduc;n1 provid$ !
  corpor,n is a ,canadian-3troll$
  private corpor,n47 ,p>agraph
  #abe7#g77d7 def9es ! expres.ns
  8p]sonal s]vices busi;s0 & 89corporat$
  employee04 ,^! def9i;ns d1l ) situ,ns
  ": a corpor,n has be5 9t]pos$ 9 :at wd
  norm,y 3/itute an employee-employ]
  rel,n%ip4 ,z a g5]al rule1 a corpor,n
  w 2 tr1t$ z c>ry+ on a p]sonal s]vices
  busi;s ": a play]3
  7a7 is1 or is relat$ to1 a 8specifi$
    %>ehold]0 (! corpor,n1 z def9$ 9
    subsec;n #bdh7#a71 or
  7b7 provides s]vices 6a p]son or
    "pn]%ip t1 9 ! abs;e (! corpor,n1 wd
    r1sonably 2 reg>d$ z ! s]vices ( an
                                     #aj
             ,,it-#afh;,r#c          c#d
    (fic] or employee (! p]son or
    "pn]%ip4
  ,an excep;n is provid$ ": ! corpor,n
  employs1 "?\t ! ye>1 m ?an #e full-"t
  employees or ": ! s]vices >e provid$
  6an 8associat$ corpor,n04 ,=a 4cus.n
  (! t]ms
--------------------------------------#e
  8p]sonal s]vices busi;s0 & 8specifi$
  %>ehold]01 see ! curr5t v].n (
  ,,it-#gc4 ,! m1n+ ( 8associat$
  corpor,n0 is 4cuss$ 9 ! curr5t v].n (
  ,,it-#fd4
#h4 ,p>agraph #ah7#a77p7 re/ricts !
  deduc;n ( exp5ses (a p]sonal s]vices
  busi;s (a corpor,n to3
  7a7 ! remun],n &! co/ ( o!r b5efits or
    all[.es provid$ 6an 89corporat$
    employee01
  7b7 c]ta9 exp5ses (! corpor,n
    associat$ ) sell+ prop]ty or
    negotiat+ 3tracts t >e ord9>ily
    deducti# f employ;t 9come1 &
                                     #aa
             ,,it-#afh;,r#c          a#e
  7c7 am.ts pd = legal exp5ses 9curr$ 0!
    corpor,n 9 collect+ am.ts [+ =
    s]vices r5d]$4
  ,p>agraph #ah7#a77p7 5sures t ! use (a
  p]sonal s]vices corpor,n does n p]mit
  ! deduc;n ( an exp5se : wd n h be5
  deducti# _h ! 9come be5 e>n$ directly
  0! play]4

     ,5dorse;ts & ,public ,appe>.es
    
#i4 ,not)/&+ ! abv1 9come f ! play]'s
  p]sonal 5dorse;ts & public appe>.es
  negotiat$ 2t ! play] & ?ird "pies is
  busi;s 9come ag/ : nec & r1sona#
  exp5ses may 2 claim$4 ,! 3tract may 2
  /ructur$ 6all[ ! 9come 6be e>n$ ei
  directly 0! play] z busi;s 9come or 0a
  corpor,n z active busi;s 9come subject
  6! small busi;s deduc;n4 ,exp5ses
  claim$ ag/ s* 9come cd 9clude co/s (
  negotiat+ ^! 5dorse;ts & public
  appe>.e 3tracts1 (fice exp5ses1 travel
  exp5ses & a3.t+ fees4 ,s* 9come    #ab
             ,,it-#afh;,r#c          b#e
  e>n$ 0a corpor,n is n 9come f a
  p]sonal s]vices busi;s4





















                                     #ac