Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
October 9, 1996
Calgary Tax Services Office Partnerships Section
Appeals Division Cal Brown
(613) 957-8980
Attention: Daljeet Dev
962699
Canada Pension Plan Contributions - Retired Partner
This is in reply to your memorandum of August 8, 1996 concerning allocations made to a retired partner of XXXXXXXXXX.
You have indicated that you were not able to locate a copy of our memorandum relating to an October 26, 1995 request on the subject of Canada Pension Plan contributions and retired partnership. We have attached a copy hereto.
You have requested our view with respect to the allocation which is made to retired partners of XXXXXXXXXX. There is insufficient information to make a final determination of the nature of the payment to the retired partner. However, we will assume, subject to your verification, that the agreement to provide the "pension" is an agreement described in paragraph 96(1.1)(a) of the Act. Accordingly, the allocation under the agreement would be considered to be partnership/business income for most purposes of the Act. As set out in the attached letter it is our view that Canada Pension Plan contributions are not required on such income.
Section Chief
Partnerships Section
Resources, Partnerships and
Trusts Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
Attachment
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© Her Majesty the Queen in Right of Canada, 1996
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