Rasmussen – Tax Court of Canada finds that Australian pension plan payments were fully taxable in Canada even though previous contributions had been non-deductible

An Australian police officer made non-deductible contributions to a “QSuper" government pension plan and then, when he became disabled, started receiving periodic “pension” amounts, a portion of which was non-taxable for Australian tax purposes. However, he then promptly immigrated to Canada and became a Canadian resident.

In finding that the pension amounts were fully taxable in Canada, Favreau J stated:

[T]he amounts received by the Appellant from the QSuper were superannuation or pension benefits and that they had to be included in his income in accordance with subparagraph 56(1)(a)(i) of the Act regardless that he was unable to deduct the contributions to the QSuper when he made them.

Neal Armstrong. Summary of Rasmussen v. The Queen, 2019 TCC 124 under s. 56(1)(a)(i).