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 ISSUE:
Whether the taxpayer's pension is exempt under paragraph 81(1)(i) of the Act?
Position TAKEN:
The amount received under section 32 or 33 of the RCMPSA will be exempt.
REASON FOR POSITION TAKEN:
Legislative analysis.
XXXXXXXXXX 2000-005319
L. J. Roy, CGA
November 9, 2000
Dear Sir:
Re: IT-397 - Pension
This is in reply to your letter of October 10, 2000, wherein you requested confirmation that the pension you are receiving under the Royal Canadian Mounted Police Superannuation Act ("RCMPSA") is exempt from tax.
Paragraph 81(1)(i) of Income Tax Act ("Act") clearly states that pension payment received under section 32 or 33 of the RCMPSA in respect of an injury, disability or death shall not be included in computing the income of a taxpayer. However, paragraph 81(1)(i) of the Act does not exclude from the taxpayer's income pension benefits paid under the RCMPSA other than under section 32 or 33.
As stated in Claude Dandurand v. Her Majesty the Queen, 98 DTC 3375, a pension paid under paragraph 10(2)(b) of the RCMPSA is not exempt under paragraph 81(1)(i) of the Act. Also, it was stated that benefits under sections 32 and 33 of RCMPSA are completely separate benefits from long service pensions paid pursuant section 10(2)(b) of the RCMPSA.
Your local tax services office has the responsibility to confirm if a completed transaction has received the appropriate tax treatment. In order to apply the exemption under paragraph 81(1)(i) Act to your situation, you must obtain from your former employer the portion of the amount of your pension that is received under section 32 or 33 of the RCMPSA.
All additional information that you will be receiving from your former employer should be transmitted to your local tax services office. In that respect, you can contact:
XXXXXXXXXX.
We trust the above information will be of assistance to you.
Acting Manager
Financing and Plans Section
Financial Industries Division
Income Tax Rulings Directorate
Policy and Legislative Branch
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