McKenzie – Tax Court of Canada finds that a foreign retirement arrangement includes an IRA which is a custodial arrangement
Reg. 6803 laconically states that a “foreign retirement arrangement” includes a “plan or arrangement to which subsection 408(a), (b) or (h)” of the IRC applies. In the course of rejecting a succession of spurious arguments that an amount received by a Canadian resident-U.S. citizen from her deceased mother’s IRA was not taxable to her under s. 56(1)(a)(i)(C.1), D’Auray J unpacked those provisions and found that the IRA came within this description notwithstanding that it was a custodial arrangement.
Neal Armstrong. Summary of McKenzie v. The Queen, 2017 TCC 56 under Reg. 6803.