Précis: The appellant operated a pooled gratuity policy at its restaurant whereby all tips were collected and pooled among staff in accordance with a formula determined by the appellant. It argued that the tips did not form part of the wages of its employees for EI and CPP purposes. Its position was that it simply collected and distributed the tips. The Tax Court rejected the appellant’s position holding that it had control of the manner in which the tips were distributed making the distribution part of the employees’ wages.
Andrew Peller Limited v. R. - TCC: Pooled tips were wages for EI and CPP purposesREAD MORE »