CRA asserts that Treaty-exempt receipts must be included in income and deducted from taxable income under s. 110(1)(f)(i)

In connection with the possibility that the a lump sum payment received by a recent Canadian resident out of a Malaysian pension plan might be Treaty exempt, CRA stated that in such event:

the individual who receives it still has to include the amount in income under clause 56(1)(a)(i)…but that individual can claim an offsetting deduction under subparagraph 110(1)(f)(i)… in computing the individual’s taxable income.

Neal Armstrong. Summaries of 2015-0571591E5 under s. 248(1) – superannuation or pension benefit and s. 110(1)(f)(i).