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: Can we provide interpretations regarding various provisions of the Act as they would relate to a proposed leveraged retirement compensation arrangement scheme?
Position: No.
Reasons: Without all of the facts and proposed transactions, we are not in a position to provide any meaningful comments. This should be handled as a ruling request.
XXXXXXXXXX 2000-005080
M. P. Sarazin
Attention: XXXXXXXXXX
December 7, 2000
Dear Sirs:
Re: Leveraged Retirement Compensation Arrangements
This is in reply to your facsimile of October 10, 2000, requesting various opinions relating to proposed transactions involving leveraged retirement compensation arrangements ("RCAs").
In your letter you have outlined what is an actual fact situation related to proposed transactions. As noted in Information Circular 70-6R3 (available at your local tax services office or on the internet at www.ccra-adrc.gc.ca/formspubs/menu-e.html), this directorate can only provide an opinion concerning the tax consequences associated with specific proposed transactions in the form of an advance income tax ruling. Consequently, we can not provide you with any meaningful general comments without a review of all of the facts and proposed transactions.
In each case, we would have determine whether or not the arrangement would qualify as an RCA. A review of all of the facts would enable us to determine the purpose of the particular arrangement in question, particularly where several transactions form part of the series of transactions and the contributing employer recovers most if not all of its RCA contributions as part of that series of transactions.
Yours truly,
Roberta Albert, CA
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