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.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues: A company is implementing a downsizing program described in subsection 8505(1) of the Regulations and, to determine whether an employee will qualify for the downsizing program, the company will have the interested employees complete a questionnaire . Can we confirm that a questionnaire is a reasonable method to ensure that the company will have sufficient information to determine whether the specific employee will qualify for the additional pension benefits offered under the downsizing program?
Position: Yes.
Reasons: Since we are not able to rule on the issue because it is a question of fact, we agree that a questionnaire is a reasonable approach to determine whether an employee will be a qualifying individual under subsection 8505(2.1) of the Regulations.
XXXXXXXXXX 2000-001443
M. P. Sarazin
Attention: XXXXXXXXXX
March 21, 2000
Dear Sirs:
Re: Qualifying Individual Exclusion under Subsection 8505(2.1) of the Regulations
This is in reply to your facsimile of March 15, 2000, wherein you asked us to confirm that a questionnaire to be completed by each employee is a reasonable method to obtain sufficient information to determine whether subsection 8505(2.1) of the Income Tax Regulations (the "Regulations") would prohibit the employee from participating in the employer's proposed downsizing program described in subsection 8505(1) of the Regulations.
We have discussed this approach with the Registered Plans Division of the Canada Customs and Revenue Agency and, as discussed in my voice mail message of March 17, 2000, we agree that such a questionnaire can capture the information necessary to determine if an employee terminated under an approved downsizing program is or is not a "qualifying individual" as described in paragraph 8505(2.1)(a) of the Regulations. Thus, in our view it is a reasonable approach.
We trust these comments will be of assistance.
Yours truly,
Patricia Spice
for Director
Financial Industries Division
Income Tax Rulings Directorate
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, 2000
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, 2000
Email this Content