CRA announces that pending a Finance COVID-19 review, it will not require the termination of a deferred salary leave plan if the leave of absence is deferred beyond 6 years

The deferred salary leave plan (DSLP) rules permit the deferral of salary for up to six years before the leave period commences. Finance is addressing issues that have arisen under the DSLP rules, including the effect on health care and other essential workers who are currently needed even if the six-year deadline for taking leave is arriving.

CRA has announced:

Pending completion of the Department of Finance Canada review, the CRA will not require an employer to terminate an individual’s DSLP in the event that the individual defers their leave of absence beyond the six-year maximum deferral period. This administrative position will apply regardless of the reason for deferring the leave. In addition to providing flexibility to health care workers and others providing essential services, it will accommodate, for example, individuals who had planned to travel during their leave but who are now unable to because of travel restrictions.

Neal Armstrong. Summary of 14 May 2020 External T.I. 2020-0848641E5 under Reg. 6801(a)(i) (15 May 2020 External T.I. 2020-0848511E5 F is similar).