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: Taxation of January 2000 cheques issued in December 1999 in case of Y2K systems failure
Position: Taxable in 1999
Reasons: Wording of 56(1)(a)(i); 153(1)(p) and Reg 200(1)
xxxxxxxxxx 991236
S. E. Thomson
Attention: xxxxxxxxxx
August 24, 1999
Dear XXXXXXXXXX:
Re January 2000 Pension Cheques - Y2K systems Failure
This is in reply to your letter of April 7, 1999 which was forwarded to us by Liz Scobie of the Registered Plans Division. You inquire whether Revenue Canada will allow administrators to report the December 1999 early payment of the January 2000 pension benefit on the recipient's T4A Supplementary for the year 2000.
Pursuant to subparagraph 56(1) (a) (i) of the Income Tax Act, there shall be included in computing the income of a taxpayer for a taxation year any pension benefit received by the taxpayer in the year. Further, by virtue of paragraph 153(1)(b) of the Income Tax Act and subsection 200(1) of the Income Tax Regulations, every person paying a pension benefit at any time in a taxation year shall withhold tax and make an information return in respect of such payment. Accordingly, any amounts received by the pensioners in 1999 must be included in their 1999 income, and the pension plan administrators must withhold tax and report in respect of such payment for that year.
We trust the above will assist you in your Year 2000 contingency plan.
Yours truly,
Director
Financial Industries Division
Income Tax Rulings and Interpretations Directorate
cc: R. Searle, Policy & Systems Section,
Registered Plans Division
Ed Williams, Individual Returns and
Payments Processing Directorate
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 1999
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 1999
Email this Content