10 August 1999 External T.I. 9911615 - NOTICE OF ASSESSMENT, 146(8.2)(C)(ll)

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.

Principal Issues: Does the reference to "notice of assessment" in subparagraph 146(8.2)(c)(ii) refer to Part I taxes or taxes under any Part of the Act?

Position: Part I taxes.

Reasons: In the absence of an explicit reference to Part 1 and with no indication that any other Part is intended, the context requires that we interpret the words "notice of assessment" in a provision located in Part 1 as being such a notice in respect of Part 1.

XXXXXXXXXX						991161
M. P. Sarazin

Attention: XXXXXXXXXX

August 10, 1999

Dear Sirs:

Re: Subparagraph 146(8.2)(c )(ii) of the Income Tax Act (the "Act")

This is in reply to your facsimile dated April 29, 1999, wherein you requested clarification as to whether the reference to "notice of assessment" in subparagraph 146(8.2)(c )(ii) of the Act meant a notice of assessment under Part I of the Act or a notice of assessment under any Part of the Act.

Comments

Under subsection 146(8) of the Act, an individual is required to include in his or her income the total of all amounts received in the year as a benefit out of a registered retirement savings plan ("RRSP"). Where certain conditions are satisfied, subsection 146(8.2) allows the taxpayer to deduct an amount in respect of undeducted RRSP contributions that are withdrawn. The condition described in subparagraph 146(8.2)(c)(ii) requires the withdrawal of the undeducted RRSP contributions within a specified time period (i.e. in the year the amounts were contributed to the RRSP, in the following year or in the year that the taxpayer was sent a notice of assessment for the year the amounts were contributed to the RRSP or the immediately following year). We note that subsection 146(8.2) of the Act was enacted as a relieving provision for taxpayers who inadvertently contribute more than they are entitled to contribute to their RRSPs.

In the absence of an explicit reference to the Part or Parts under which it is intended the notice of assessment be issued, it is our view a contextual interpretation is reasonable. Thus, the context requires that we interpret the words "notice of assessment" in a provision located in Part 1 as being such a notice in respect of Part 1.

The Department has expressed its general views on the application of subsection 146(8.2) of the Act in paragraphs 25 to 29 of Interpretation Bulletin IT-124R6. We trust the above comments will be of assistance to you.

Yours truly,

Patricia Spice
for Director
Financial Industries Division
Income Tax R~ings and
Interpretations Directorate