2 March 2001 Ruling 2001-0070233 - Collective Agreement, PBSA

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 rule on the application of the Pension Benefits Standards Act, 1985 or on whether certain payments are in accordance with a pension plan as registered?

Position: No.

Reasons:

Neither are included in the responsibilities of the Income Tax Rulings Directorate.

XXXXXXXXXX 2001-007023
M. P. Sarazin, CA
March 2, 2001

Dear XXXXXXXXXX:

Re: Advance Income Tax Ruling Request - XXXXXXXXXX

This is in reply to your letter of February 7, 2001, requesting an advance income tax ruling on behalf of the above-noted taxpayer.

Information Circular 70-6R4 dated January 29, 2001 discusses the advance income tax ruling service provided by the Canada Customs and Revenue Agency (the "Agency"). Advance income tax rulings related to the application of the Income Tax Act and the Income Tax Regulations are provided by the Income Tax Rulings Directorate (the "Directorate").

We have reviewed your request for an advance income tax ruling and we note the following in respect of your submission on behalf of the above-noted taxpayer.

(a) As noted in paragraph 2 of IC 70-6R4, an advance income tax ruling is a written statement given by the Directorate to a taxpayer stating how the Agency will interpret and apply specific provisions of existing Canadian income tax law to a definite transaction or transactions which the taxpayer is contemplating. You have requested an income tax ruling that the existing terms of a collective agreement, as they relate to a registered pension plan subjected to the Pension Benefits Standards Act, 1985 ("PBSA"), would not contravene the PBSA. We do not provide income tax rulings with respect to the application of the PBSA. Consequently, your request concerning the application of the PBSA should be directed to the Office of the Superintendent of Financial Institutions Canada whose office is responsible for administering the PBSA.

(b) The only other issue that you have asked us to address in your submission is whether an employer could make a payment, required under a collective agreement, to a registered pension plan ("RPP"). The determination of whether a payment is in accordance with the terms of an RPP is the responsibility of the Registered Plans Directorate of the Agency. You should address this concern to:

The Registered Plans Directorate
Canada Customs and Revenue Agency
3rd Floor
45 Sacre Coeur Blvd
Hull QC K1A 0L5

(c) Paragraph 16 of IC 70-6R4 discusses the information that has to be provided with a submission before we will commence our review of an application for an advance income tax ruling. Other than the payment of a deposit and an undertaking to pay any further fees, your submission did not include any of the requirements described in paragraph 16 of IT 70-6R4. Consequently, we would not have been able to consider your request for an advance income tax ruling in the format submitted.

We are closing your file and a refund of your deposit will be made under separate cover.

Yours truly,

Roberta Albert, CA
for Director
Financial Industries Division
Income Tax Rulings Directorate