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: 1. Is Part XII.2 tax refundable to a trust governed by a RRSP, RRIF, or DPSP even though no Part I tax is payble by any of these plans?
Position: 1. amount is refundable
Reasons: 1. 210.2(3) deems an amt to have been paid on account of tax, but does not form part of the tax calculation
XXXXXXXXXX 2000-002500
L. Holloway, CA
June 18, 2001
Dear XXXXXXXXXX:
Re: Part XII.2 Tax Refund
This is in reply to your letter of May 9, 2000 requesting a technical interpretation on the availability of a refund of Part XII.2 tax deemed to be paid by a trust governed by a Registered Retirement Savings Plan ("RRSP"), Registered Retirement Income Fund ("RRIF") or Deferred Profit Sharing Plan ("DPSP") (collectively the "Deferred Income Plans"). It is your opinion that although no Part I tax is payable by any of the Deferred Income Plans, the proportionate Part XII.2 tax should be refundable to the particular plan.
We agree with your conclusion. Note that this interpretation is otherwise confirmed by the fact that line 030 appearing on forms T3IND (Income Tax Return for RRSP, RRIF, or RESP) and T3D (Income Tax Return for DPSP or Revoked DPSP) provides for a Part XII.2 credit when calculating the refund available to such Deferred Income Plans.
We apologize for the delay in our response.
Yours truly,
T. Murphy, Manager
Trusts Section
International and Trusts Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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