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: Will the Mandatory Provident Fund Scheme Ordinance being established as of December 1, 2000 in Hong Kong qualify as a pension for purposes of the Act?
Position: Question of fact.
Reasons: Without a review of the particular plan documents and the facts surrounding a participant's employment, we are not able to provide definitive comments regarding a plan qualifying as a pension plan for purposes of the Act.
XXXXXXXXXX 2000-006283
M. P. Sarazin
Attention: XXXXXXXXXX
January 17, 2001
Dear Sir\Madam:
Re: Hong Kong's Mandatory Provident Fund Scheme Ordinance
This is in reply to your letter of December 27, 2000, acknowledging receipt of our letter dated November 30, 2000 (the "Letter") and requesting additional comments regarding the Mandatory Provident Fund Scheme Ordinance (the "Plan") that was implemented in Hong Kong qualifying as a pension plan for purposes of the Income Tax Act (Canada) (the "Act").
As we noted in the Letter, the determination of whether any particular plan would constitute a superannuation or pension fund for purposes of the Act is a question of fact. Consequently, the determination of how amounts (lump sum or periodic payments) received out of the Plan by a participant that immigrates to Canada would be taxed under the Act would require a review of all of the relevant facts.
For greater certainty, if it is determined that the Plan is not a superannuation or pension plan for purposes of the Act, we would still have to review all of the facts to determine how the payments received by a resident of Canada out of the Plan would be taxed under the Act. The comments provided in the Letter should not be construed as implying that you can conclude that the amounts paid out of the Plan to a resident of Canada would not be taxable under the Act.
If there is a proposed immigration by a participant in the Plan, we would be pleased to review the Plan documents and the relevant facts surrounding the participant's employment as they relate to the Plan in the context of a request for an advance income tax ruling.
Yours truly,
Roberta Albert, CA
for Director
Financial Industries Division
Income Tax Rulings Directorate
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