Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
XXXX Peter K. Noack (613)957-8953
August 12, 1987
Dear Sirs:
We regret the long delay in replying to your letter of August 21, 1985, concerning the treatment for tax purposes of income accruing in an Individual Retirement Arrangement (IRA) held by a Canadian resident and of lump sum payments to such an IRA from a U.S. pension plan.
The matter of the tax treatment of IRAs is presently under review. Because of the variety of arrangements, we propose to respond to questions involving IRAs on a case-by-case basis. For that purpose, we would require a copy of the particular arrangement.
Subsection 75(3) of the Act has been added to exempt, among others, IRA trusts from the application of the provisions of subsection 75(2).
We are also of the opinion that an amount received by a Canadian resident as a distribution from a U.S. qualified pension plan and rolled over into an IRA is pension income that would be excluded from taxable income in Canada within the meaning of paragraph 1 of Article XVIII of the Income Tax Convention.
Yours truly,
for Director Financial Industries Division Rulings Directorate Legislative and Intergovernmental Affairs Branch
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 1987
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 1987
Email this Content