The
appellant’s
employment
with
Cameo
Inc.
was
terminated
in
1989
due
to
a
corporate
reorganization.
In
that
year
Cameo
Inc.
paid
over
the
appellant’s
pension
entitlement
of
$52,822.50
directly
to
the
appellant’s
registered
retirement
savings
plan
("RRSP”)
with
the
Royal
Trust
Company.
In
1991
the
appellant
converted
the
then
balance
in
his
RRSP
to
a
RRIF
with
Royal
Trust
Company.
In
1992,
a
year
when
the
appellant
had
not
yet
attained
the
age
of
65,
he
received
$12,000
from
his
RRIF
and
he
claimed
entitlement
to
the
pension
credit
of
$1,000.
118(3)
For
the
purpose
of
computing
the
tax
payable
under
this
Part
by
an
individual
for
a
taxation
year,
there
may
be
deducted,
(a)
where
the
individual
has
attained
the
age
of
65
years
before
the
end
of
the
year,
an
amount
determined
by
the
formula
AxB
where
A
is
the
appropriate
percentage
for
the
year,
and
B
is
the
lesser
of
$1,000
and
the
pension
income
received
by
the
individual
in
the
year;
and
(b)
where
the
individual
(other
than
an
individual
referred
to
in
paragraph
(a))
has
before
the
end
of
the
year
(i)
attained
the
age
of
60
years,
(ii)
received
a
disability
pension
or
survivor’s
pension
under
the
Canada
Pension
Plan
or
under
a
provincial
pension
plan
as
defined
in
section
3
of
that
Act,
or
(iii)
not
attained
the
age
of
60
years,
and
has
not
deducted
in
computing
his
income
for
the
year
an
amount
under
paragraph
60(j)
(other
than
in
respect
of
an
amount
included
in
computing
his
income
pursuant
to
subsection
147(10),
which
amount
was
received
in
satisfaction
of
all
his
rights
and
entitlements
under
a
deferred
profit
sharing
plan),
an
amount
determined
by
the
formula
AxB
where
A
is
the
appropriate
percentage
for
the
year,
and
B
is
the
lesser
of
$1,000
and
the
qualified
pension
income
received
by
the
individual
in
the
year.
118(7)
Subject
to
subsection
(8),
for
the
purposes
of
subsection
(3),
"pension
income
"-’’pension
income"
received
by
an
individual
in
a
taxation
year
means
the
total
of
(a)
the
aggregate
of
all
amounts
each
of
which
is
an
amount
included
in
computing
his
income
for
the
year
that
is
(i)
a
payment
in
respect
of
a
life
annuity
out
of
or
under
a
superannuation
or
pension
plan,
(ii)
an
annuity
payment
under
a
registered
retirement
savings
plan,
under
an
"amended
plan”
as
referred
to
in
subsection
146(12)
or
under
an
annuity
in
respect
of
which
an
amount
is
included
in
computing
the
individual’s
income
by
reason
of
paragraph
56(
1
)(d.2),
(iii)
a
payment
out
of
or
under
a
registered
retirement
income
fund
or
under
an
"amended
fund"
as
referred
to
in
subsection
146.3(11),
(iv)
an
annuity
payment
under
a
deferred
profit
sharing
plan
or
under
a
"revoked
plan"
as
referred
to
in
subsection
147(15),
(v)
a
payment
described
in
subparagraph
147(2)(k)(v),
or
(vi)
the
amount
by
which
an
annuity
payment
included
in
computing
the
individual’s
income
for
the
year
by
reason
of
paragraph
56(1
)(d)
exceeds
the
capital
element
of
that
payment
as
determined
or
established
under
paragraph
60(a),
and
(b)
the
aggregate
of
all
amounts
each
of
which
is
an
amount
included
in
computing
the
individual’s
income
for
the
year
by
reason
of
section
12.2
or
paragraph
56(1
)(d.
1
);
"qualified
pension
income'—"qualified
pension
income"
received
by
an
individual
in
a
taxation
year
means
the
aggregate
of
all
amounts
each
of
which
is
an
amount
included
in
computing
his
income
for
the
year
and
described
in
(a)
subparagraph
(a)(i)
of
the
definition
"pension
income",
or
(b)
any
of
subparagraphs
(a)(ii)
to
(vi)
or
paragraph
(b)
of
the
definition
"pension
income"
received
by
the
individual
as
a
consequence
of
the
death
of
a
spouse
(within
the
meaning
assigned
by
subsection
146(1.1))
of
the
individual.
The
appellant’s
submission
is
that
the
moneys
in
the
RRIF
derive
from
Cameo’s
pension
plan
and
therefore
that
payments
from
the
RRIF
are
essentially
the
same
as
a
payment
from
Cameo’s
pension
plan
which
would
have
qualified
him
for
the
credit.
In
other
words
the
payments
should
be
considered
as
"pension
income"
rather
than
"qualified
pension
income".
The
law
is
clear
that
payments
out
of
a
RRIF
do
not
entitle
recipients
under
age
65
to
the
$1,000
pension
credit.
It
is
true
that
had
the
payments
come
directly
from
the
Cameo
pension
plan
the
credit
would
be
available.
Although
there
is
a
"paper
trail"
showing
where
the
moneys
originated,
this
is
not
sufficient
to
alter
the
application
of
the
Act.
Payments
under
a
RRIF
are
not
the
same
as
direct
pension
payments.
The
appellant
controls
his
RRIF’s
investments
and
the
amounts
of
the
payments
to
him.
The
appellant
has
probably
acted
prudently
from
a
tax
point
of
view
in
having
his
company
pension
rolled-over
on
a
tax-free
basis
into
his
RRSP
and
subsequently
converted
on
a
tax-free
basis
to
a
RRIF.
Having
done
that
however
he
cannot
now
be
heard
to
argue
that
payments
from
the
RRIF
are
to
be
treated
in
the
same
manner
as
direct
payments
from
his
company
pension
plan.
The
appeal
is
dismissed.
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