Income Tax Severed Letters - 2003-06-27

Ruling

2003 Ruling 2002-01666730 - Reorganization of foreign affiliates

Unedited CRA Tags
95(1); 95(2)(d) 87(8.1)

Principal Issues: (1) Would any foreign accrual property income be generated as a result of the proposed transactions? (2) Would the proposed merger qualify as a "foreign merger" within the meaning of subsection 87(8.1)?

Position: (1) No, provided certain factual conditions are satisfied. (2) Yes.

2003 Ruling 2003-0009383 F - DISPOSITION MANDAT

Unedited CRA Tags
248(1)

Principales Questions:
Est-ce qu'il y aura disposition au sens de la définition du terme " disposition " au paragraphe 248(1) de la Loi suite à la vente d'un immeuble à une société au moyen d'un acte de vente (contrat apparent) bien qu'une convention (contre-lettre) existe entre les parties afin de rendre nulle la transaction de vente et de considérer ladite société seulement comme un mandataire des copropriétaires actuels ?

Est-ce que l'hypothèque contractée par la société à titre de mandataire des copropriétaires, dans le cadre de la convention, constitue une dette de la société et doit être considérée aux fins du calcul de l'impôt des grandes sociétés à la partie I.3 de la Loi ?

Position Adoptée:
Il n'y aura pas de disposition au sens du terme " disposition " au paragraphe 248(1) de la Loi dans la situation présentée. Par conséquent, en ce qui concerne les copropriétaires, il n'y aura pas de gain en capital ni de récupération d'allocation du coût en capital à inclure dans leur revenu lors de la transaction entre eux et la société. De plus, pour ce qui est de la société, il n'y aura pas d'impôt des grandes sociétés à la partie I.3 de la Loi. Même position que dans le dossier numéro 2002-013968.

2003 Ruling 2003-00052430 - Share for Share Exchange

Unedited CRA Tags
85.1

Principal Issues:
1. Whether a proposed share for share exchange results in an acquisition of control CANCO?
2. Whether the new rights under a shareholder rights plan constitute "consideration other than shares" received on the share exchange for purposes of paragraph 85.1(2)(d)?

Position:
1. No.
2. No.

Reasons: 1. Clause 256(7)(a)(i)(B) will deem there to not be an acquisition of control of CANCO.
2. Based upon the relevant facts and circumstances, it is reasonable to accept that the new rights are not consideration for the shares exchanged

2003 Ruling 2003-0009553 - repayment of government assistance

Unedited CRA Tags
20(1)(hh)

Principal Issues:
1. Deductibility of repayments of government assistance previously brought into income under 12(1)(x).
2. Will paragraphs 18(1)(a) & 18(1)(m) apply to prohibit deductions of repayments?

Position:
1. Repayments are deductible.
2. No.

Reasons:
1. subsection 20(1)(hh) is applicable.
2. amounts will be clearly laid out to earn income (18(1)(a)); also as amounts are not royalties 18(1)(m) has no application

2003 Ruling 2003-00093830 F - DISPOSITION MANDAT

Unedited CRA Tags
248(1)

Principales Questions:
Est-ce qu'il y aura disposition au sens de la définition du terme " disposition " au paragraphe 248(1) de la Loi suite à la vente d'un immeuble à une société au moyen d'un acte de vente (contrat apparent) bien qu'une convention (contre-lettre) existe entre les parties afin de rendre nulle la transaction de vente et de considérer ladite société seulement comme un mandataire des copropriétaires actuels ?

Est-ce que l'hypothèque contractée par la société à titre de mandataire des copropriétaires, dans le cadre de la convention, constitue une dette de la société et doit être considérée aux fins du calcul de l'impôt des grandes sociétés à la partie I.3 de la Loi ?

Position Adoptée:
Il n'y aura pas de disposition au sens du terme " disposition " au paragraphe 248(1) de la Loi dans la situation présentée. Par conséquent, en ce qui concerne les copropriétaires, il n'y aura pas de gain en capital ni de récupération d'allocation du coût en capital à inclure dans leur revenu lors de la transaction entre eux et la société. De plus, pour ce qui est de la société, il n'y aura pas d'impôt des grandes sociétés à la partie I.3 de la Loi. Même position que dans le dossier numéro 2002-013968.

2003 Ruling 2003-0184493 - PHANTOM STOCK PLANS

Unedited CRA Tags
REG 6801(d)

Principal Issues: Will the proposed DSU plans be excluded from the SDA rules

Position: Yes

Reasons: They comply with provisions of 6801(d) of the Regulations.

2003 Ruling 2003-00095530 - repayment of government assistance

Unedited CRA Tags
20(1)(hh)

Principal Issues:
1. Deductibility of repayments of government assistance previously brought into income under 12(1)(x).
2. Will paragraphs 18(1)(a) & 18(1)(m) apply to prohibit deductions of repayments?

Position:
1. Repayments are deductible.
2. No.

Reasons:
1. subsection 20(1)(hh) is applicable.
2. amounts will be clearly laid out to earn income (18(1)(a)); also as amounts are not royalties 18(1)(m) has no application

2003 Ruling 2003-01844930 - PHANTOM STOCK PLANS

Unedited CRA Tags
REG 6801(d)

Principal Issues: Will the proposed DSU plans be excluded from the SDA rules

Position: Yes

Reasons: They comply with provisions of 6801(d) of the Regulations.

2003 Ruling 2002-0166673 - Reorganization of foreign affiliates

Unedited CRA Tags
95(1); 95(2)(d) 87(8.1)

Principal Issues: (1) Would any foreign accrual property income be generated as a result of the proposed transactions? (2) Would the proposed merger qualify as a "foreign merger" within the meaning of subsection 87(8.1)?

Position: (1) No, provided certain factual conditions are satisfied. (2) Yes.

2003 Ruling 2003-0005243 - Share for Share Exchange

Unedited CRA Tags
85.1

Principal Issues:
1. Whether a proposed share for share exchange results in an acquisition of control CANCO?
2. Whether the new rights under a shareholder rights plan constitute "consideration other than shares" received on the share exchange for purposes of paragraph 85.1(2)(d)?

Position:
1. No.
2. No.

Reasons: 1. Clause 256(7)(a)(i)(B) will deem there to not be an acquisition of control of CANCO.
2. Based upon the relevant facts and circumstances, it is reasonable to accept that the new rights are not consideration for the shares exchanged

Technical Interpretation - External

26 June 2003 External T.I. 2003-0016705 - SHAREOLDER LOAN ACCOUNT

Unedited CRA Tags
15(2) 15(2.6)

Principal Issues: Whether a running shareholder loan account meets the exception in subsection 15(2.6) of the Act, if within 180 days after the end of the corporation's fiscal year-end it is cleared with the credit of bonuses payable at the end of the fiscal year end?

Position: Yes.

Reasons: Bona fide repayments to a shareholder loan account resulting from the payment of dividends, salaries, or bonuses, are not part of a series of loans or other transactions and repayments.

26 June 2003 External T.I. 2003-00167050 - SHAREOLDER LOAN ACCOUNT

Unedited CRA Tags
15(2) 15(2.6)

Principal Issues: Whether a running shareholder loan account meets the exception in subsection 15(2.6) of the Act, if within 180 days after the end of the corporation's fiscal year-end it is cleared with the credit of bonuses payable at the end of the fiscal year end?

Position: Yes.

Reasons: Bona fide repayments to a shareholder loan account resulting from the payment of dividends, salaries, or bonuses, are not part of a series of loans or other transactions and repayments.

25 June 2003 External T.I. 2001-00901650 - ACCIPENTAL DEATH & DISMEMBER INSURANCE

Unedited CRA Tags
6(1)(A) 6(1)(F)

Principal Issues:
1. Whether employer paid premiums relating to a group accidental death and dismemberment insurance plan are a taxable benefit to an employee.
2. Whether the receipt of benefits under the group accidental death and dismemberment insurance plan will be included in computing taxable income of the recipient.
3. Whether the answer to the above two questions is any different when the insured is the spouse or common-law partner of the employee.

Position: 1. No.
2. Question of fact.
3. Question of fact.

Reasons:
1. Excluded under subparagraph 6(1)(a)(i) of the Act.
2. Amounts received in respect of accidental dismemberment are not included in income, amounts received as a "disability payment" are included in income under paragraph 6(1)(f)) and amounts received as a death benefit are included in income under 56(1)(a)(iii)).
3. May be excluded because of wording of 6(1)(a) and 6(1)(f) of the Act where the recipients are not employees.

25 June 2003 External T.I. 2001-0090165 - ACCIPENTAL DEATH & DISMEMBER INSURANCE

Unedited CRA Tags
6(1)(A) 6(1)(F)

Principal Issues:
1. Whether employer paid premiums relating to a group accidental death and dismemberment insurance plan are a taxable benefit to an employee.
2. Whether the receipt of benefits under the group accidental death and dismemberment insurance plan will be included in computing taxable income of the recipient.
3. Whether the answer to the above two questions is any different when the insured is the spouse or common-law partner of the employee.

Position: 1. No.
2. Question of fact.
3. Question of fact.

Reasons:
1. Excluded under subparagraph 6(1)(a)(i) of the Act.
2. Amounts received in respect of accidental dismemberment are not included in income, amounts received as a "disability payment" are included in income under paragraph 6(1)(f)) and amounts received as a death benefit are included in income under 56(1)(a)(iii)).
3. May be excluded because of wording of 6(1)(a) and 6(1)(f) of the Act where the recipients are not employees.

24 June 2003 External T.I. 2003-0009925 - PRINCIPAL BUSINESS OF LEASING PROPERTY

Unedited CRA Tags
REG 1100(15) REG 1100(16)

Principal Issues:
A corporation is engaged in equipment rentals of class 38 assets (ex. backhoes, dump trucks and excavators) along with operators on an hourly basis to customers who are generally in construction. Would such a corporation's primary activity be that of leasing property or that of construction?

24 June 2003 External T.I. 2002-01764750 F - DOMMAGES-INTERETS PROFESSIONEL

Unedited CRA Tags
8(2) 8(5)

Position Adoptée:
Les dommages-intérêts ne sont pas déductibles. Les exigences en matière de déductibilité des dommages sont résumées aux paragraphes 5 et 6 du Bulletin d'interprétation IT-467R2.

24 June 2003 External T.I. 2003-00099250 - PRINCIPAL BUSINESS OF LEASING PROPERTY

Unedited CRA Tags
REG 1100(15) REG 1100(16)

Principal Issues:
A corporation is engaged in equipment rentals of class 38 assets (ex. backhoes, dump trucks and excavators) along with operators on an hourly basis to customers who are generally in construction. Would such a corporation's primary activity be that of leasing property or that of construction?

24 June 2003 External T.I. 2002-0176475 F - DOMMAGES-INTERETS PROFESSIONEL

Unedited CRA Tags
8(2) 8(5)

Position Adoptée:
Les dommages-intérêts ne sont pas déductibles. Les exigences en matière de déductibilité des dommages sont résumées aux paragraphes 5 et 6 du Bulletin d'interprétation IT-467R2.

23 June 2003 External T.I. 2003-00202650 - DEPT CONVERSION TO PARTNERSHIP CAPITAL

Unedited CRA Tags
80(1)(K) 53(1)(e)(iv)

Principal Issues:
Whether, the debt forgiveness rules (section 80) apply where a person converts a loan receivable from a limited partnership into additional partnership capital.

23 June 2003 External T.I. 2003-00209850 - 153(1.1)

Unedited CRA Tags
153(1.1)

Principal Issues:
Whether we may consider granting approval to a taxpayer to reduce the taxpayer's withholding taxes at source where he or she incurs interest expense on money borrowed for the purpose of earning income from a business or property?

Position:
We have discretion to grant such approval under subsection 153(1.1). However, each case must be examined individually.

Reasons: As stated above.

23 June 2003 External T.I. 2003-00047950 F - TRANSPORT AU LIEU D'EMPLOI

Unedited CRA Tags
6(1)

Principales Questions:
Est-ce que les employés bénéficient d'un avantage imposable en raison de leur transport du point de rassemblement au site d'emploi par le véhicule fourni par l'employeur dans une situation particulière?

Position Adoptée:
Selon les circonstances de la situation particulière, il n'y aurait pas d'avantage imposable pour les employés en raison du transport fourni par l'employeur du point de rassemblement jusqu'au lieu de l'emploi.

23 June 2003 External T.I. 2003-0020265 - DEPT CONVERSION TO PARTNERSHIP CAPITAL

Unedited CRA Tags
80(1)(K) 53(1)(e)(iv)

Principal Issues:
Whether, the debt forgiveness rules (section 80) apply where a person converts a loan receivable from a limited partnership into additional partnership capital.

23 June 2003 External T.I. 2003-0020985 - 153(1.1)

Unedited CRA Tags
153(1.1)

Principal Issues:
Whether we may consider granting approval to a taxpayer to reduce the taxpayer's withholding taxes at source where he or she incurs interest expense on money borrowed for the purpose of earning income from a business or property?

Position:
We have discretion to grant such approval under subsection 153(1.1). However, each case must be examined individually.

Reasons: As stated above.

23 June 2003 External T.I. 2003-0004795 F - TRANSPORT AU LIEU D'EMPLOI

Unedited CRA Tags
6(1)

Principales Questions:
Est-ce que les employés bénéficient d'un avantage imposable en raison de leur transport du point de rassemblement au site d'emploi par le véhicule fourni par l'employeur dans une situation particulière?

Position Adoptée:
Selon les circonstances de la situation particulière, il n'y aurait pas d'avantage imposable pour les employés en raison du transport fourni par l'employeur du point de rassemblement jusqu'au lieu de l'emploi.

18 June 2003 External T.I. 2003-0004265 - CRITICAL ILLNESS INSURANCE

Unedited CRA Tags
148

Principal Issues: To provide an update on the CCRA's position on issues raised with respect to "critical illness insurance".

Position: Where an insurance policy provides for both critical illness and "return of premium" (ROP) benefits , the ROP benefits may constitute life insurance benefits. For civil law purposes, the primary coverage provided under the policy determines the character of the policy for tax purposes. It is, as yet, undetermined whether this is also true of policies governed by common law.

Reasons: N/A

18 June 2003 External T.I. 2003-00227950 - SICK LEAVE PAYOUTS

Unedited CRA Tags
60(j.1) 248(1)

Principal Issues:
Can certain payments made under the Ontario Social Housing Reform Act, 2000 be treated as the payment of retiring allowances.

Position: No

Reasons:
Section 52(9) of the legislation indicates that the employees did not terminate their employment on their transfer between employers.

18 June 2003 External T.I. 2003-00042650 - CRITICAL ILLNESS INSURANCE

Unedited CRA Tags
148

Principal Issues: To provide an update on the CCRA's position on issues raised with respect to "critical illness insurance".

Position: Where an insurance policy provides for both critical illness and "return of premium" (ROP) benefits , the ROP benefits may constitute life insurance benefits. For civil law purposes, the primary coverage provided under the policy determines the character of the policy for tax purposes. It is, as yet, undetermined whether this is also true of policies governed by common law.

Reasons: N/A

18 June 2003 External T.I. 2003-0022795 - SICK LEAVE PAYOUTS

Unedited CRA Tags
60(j.1) 248(1)

Principal Issues:
Can certain payments made under the Ontario Social Housing Reform Act, 2000 be treated as the payment of retiring allowances.

Position: No

Reasons:
Section 52(9) of the legislation indicates that the employees did not terminate their employment on their transfer between employers.

17 June 2003 External T.I. 2003-00081650 - INVESTMENTS OF A POOLED FUND TRUST

Unedited CRA Tags
5000(7)

Principal Issues:
If, as one of its investments, a pooled fund trust" ("PFT") invests in another trust that only invests in assets listed in 5000(7)(a)(i), for purposes of determining whether the first trust satisfies paragraph (d) of the PFT definition, can we look through the second trust to income from its assets?

Position: No

Reasons: The wording of the legislation does not accommodate this approach.

17 June 2003 External T.I. 2003-0008165 - INVESTMENTS OF A POOLED FUND TRUST

Unedited CRA Tags
5000(7)

Principal Issues:
If, as one of its investments, a pooled fund trust" ("PFT") invests in another trust that only invests in assets listed in 5000(7)(a)(i), for purposes of determining whether the first trust satisfies paragraph (d) of the PFT definition, can we look through the second trust to income from its assets?

Position: No

Reasons: The wording of the legislation does not accommodate this approach.

13 June 2003 External T.I. 2003-0018925 - EMPLOYEE HOME RELOCATION& PURCHASE LOANS

Unedited CRA Tags
80.4 110(1)(j)

Principal Issues: The income tax implications for employees who relocate and receive a low-interest mortgage by virtue of their employment

Position: Taxable benefit arises under subsection 80.4(1) of the Act. If the loan is a home relocation loan, the employee may be entitled to a deduction under paragraph 110(1)(j) of the Act for a portion of the interest.

Reasons: Application of the provisions in section 80.4 of the Act and paragraph 110(1)(j).

13 June 2003 External T.I. 2003-00189250 - EMPLOYEE HOME RELOCATION& PURCHASE LOANS

Unedited CRA Tags
80.4 110(1)(j)

Principal Issues: The income tax implications for employees who relocate and receive a low-interest mortgage by virtue of their employment

Position: Taxable benefit arises under subsection 80.4(1) of the Act. If the loan is a home relocation loan, the employee may be entitled to a deduction under paragraph 110(1)(j) of the Act for a portion of the interest.

Reasons: Application of the provisions in section 80.4 of the Act and paragraph 110(1)(j).

9 June 2003 External T.I. 2003-00043350 - SHARE VALUATION AND POLICY LOANS

Unedited CRA Tags
148(9) 70(5.3)

Principal Issues: Whether for purposes of subsection 70(5), a policy loan under a life insurance policy, that is outstanding at the time the life insured under the policy dies, would be treated as any other liability of the corporate policyholder in computing the FMV of the shares of the corporation.

Position: Depends.

Reasons: Ordinary valuation principles

9 June 2003 External T.I. 2003-0004275 - ACB OF TRANSFERRED LIFE INSURANCE POLICIES

Unedited CRA Tags
148(7) 15(1) 148(9)

Principal Issues: If the FMV of a policy exceeds its CSV and the policy is transferred in circumstances such that subsection 148(7) applies, can the transferee, in computing the ACB of the policy include the full amount of any subsection 15(1) benefit realized on the transfer?

Position: No

Reasons: The legislation

9 June 2003 External T.I. 2003-0004335 - SHARE VALUATION AND POLICY LOANS

Unedited CRA Tags
148(9) 70(5.3)

Principal Issues: Whether for purposes of subsection 70(5), a policy loan under a life insurance policy, that is outstanding at the time the life insured under the policy dies, would be treated as any other liability of the corporate policyholder in computing the FMV of the shares of the corporation.

Position: Depends.

Reasons: Ordinary valuation principles

9 June 2003 External T.I. 2003-00042750 - ACB OF TRANSFERRED LIFE INSURANCE POLICIES

Unedited CRA Tags
148(7) 15(1) 148(9)

Principal Issues: If the FMV of a policy exceeds its CSV and the policy is transferred in circumstances such that subsection 148(7) applies, can the transferee, in computing the ACB of the policy include the full amount of any subsection 15(1) benefit realized on the transfer?

Position: No

Reasons: The legislation

6 June 2003 External T.I. 2003-0004315 - GIFT OF LIFE INSURANCE POLICIES

Unedited CRA Tags
118.1(5.1)

Principal Issues:
1. Whether a portion of the death benefit under a life insurance policy paid to a qualified donee as a beneficiary under the policy would qualify as a charitable gift.
2. Can the CCRA provide general guidelines in determining whether a shared ownership arrangement between a policyholder and a charity would result in a charitable gift?

Position:
1. Yes, if all the requirements set out in subsection 118.1(5.1) are met.
2. Not at this time since we have not had the opportunity to review specific shared ownership arrangements.

Reasons:
1. Subsections 118.1(5.1) and (5.2).
2. Such a determination can only be made on a case-by-case basis.

6 June 2003 External T.I. 2003-00043150 - GIFT OF LIFE INSURANCE POLICIES

Unedited CRA Tags
118.1(5.1)

Principal Issues:
1. Whether a portion of the death benefit under a life insurance policy paid to a qualified donee as a beneficiary under the policy would qualify as a charitable gift.
2. Can the CCRA provide general guidelines in determining whether a shared ownership arrangement between a policyholder and a charity would result in a charitable gift?

Position:
1. Yes, if all the requirements set out in subsection 118.1(5.1) are met.
2. Not at this time since we have not had the opportunity to review specific shared ownership arrangements.

Reasons:
1. Subsections 118.1(5.1) and (5.2).
2. Such a determination can only be made on a case-by-case basis.

23 May 2003 External T.I. 2003-0004245 - INTEREST

Unedited CRA Tags
20(1)(c)

Principal Issues: Paragraph 20(1)(c) provides that the interest deduction is restricted to the amount of interest paid or payable "or a reasonable amount in respect thereof, whichever is the lesser." What factors does the Agency consider when determining whether interest payable pursuant to a particular loan agreement exceeds "a reasonable amount in respect thereof, whichever is lesser?"

23 May 2003 External T.I. 2003-00042450 - INTEREST

Unedited CRA Tags
20(1)(c)

Principal Issues: Paragraph 20(1)(c) provides that the interest deduction is restricted to the amount of interest paid or payable "or a reasonable amount in respect thereof, whichever is the lesser." What factors does the Agency consider when determining whether interest payable pursuant to a particular loan agreement exceeds "a reasonable amount in respect thereof, whichever is lesser?"

6 May 2003 External T.I. 2003-00042350 - INTEREST DEDUCTIBILITY

Unedited CRA Tags
20(1)(c)

Principal Issues:
Interest deductibility on borrowed money used for the purpose of earning income

6 May 2003 External T.I. 2003-0004235 - INTEREST DEDUCTIBILITY

Unedited CRA Tags
20(1)(c)

Principal Issues:
Interest deductibility on borrowed money used for the purpose of earning income

Technical Interpretation - Internal

19 June 2003 Internal T.I. 2003-00212970 F - LOI SUR L'ACCISE PENALITES INTERETS

Unedited CRA Tags
18(1)(t) 18(1)(a)

Position Adoptée:
1. Les intérêts et pénalités découlant de l'application de la Loi sont non déductibles.
2. Question de fait. Mais généralement oui.

19 June 2003 Internal T.I. 2003-0021297 F - LOI SUR L'ACCISE PENALITES INTERETS

Unedited CRA Tags
18(1)(t) 18(1)(a)

Position Adoptée:
1. Les intérêts et pénalités découlant de l'application de la Loi sont non déductibles.
2. Question de fait. Mais généralement oui.

16 June 2003 Internal T.I. 2003-00148070 - WITHHOLDING ON STATUS INDIAN RRSP AMOUNT

Unedited CRA Tags
81(1)(a)

Principal Issues: What are the CCRA's requirements to issue a waiver confirming that withholding taxes are not required from payments to a status Indian from an RRSP or RRIF that received funds from an RPP benefit established from tax exempt income?

Position: If the RPP carrier and/or relevant employer can provide the RRSP/RRIF carrier with appropriate documentation and information evidencing that a tax-exempt RPP benefit arose from tax-exempt employment income and the quantum of the tax exempt benefit transferred from the RPP to the RRSP/RRIF, as long as no other monies have been co-mingled with the tax exempt RPP funds, payments from the RRSP/RRIF can be made by the carrier without withholdings. Where co-mingling has occurred, it will be necessary to trace the amounts originating from exempt income.

If the carrier does not have sufficient information to confirm that the RRSP amount is tax-exempt, the Indian can request a waiver from the CCRA. The CCRA will require written confirmation of the Indian's periods of exempt employment and the corresponding tax-exempt RPP benefit that was transferred to the registered vehicle. This information would most likely come from the status Indian's employer or RPP administrator. If the RRSP/RRIF funds originating from an exempt RPP benefit have been commingled with other funds, the CCRA must be provided with the appropriate tracing information.

Reasons: Information provided by Trust Accounts Division (formerly Source Deductions) of Assessment & Collections Branch

16 June 2003 Internal T.I. 2003-0014807 - WITHHOLDING ON STATUS INDIAN RRSP AMOUNT

Unedited CRA Tags
81(1)(a)

Principal Issues: What are the CCRA's requirements to issue a waiver confirming that withholding taxes are not required from payments to a status Indian from an RRSP or RRIF that received funds from an RPP benefit established from tax exempt income?

Position: If the RPP carrier and/or relevant employer can provide the RRSP/RRIF carrier with appropriate documentation and information evidencing that a tax-exempt RPP benefit arose from tax-exempt employment income and the quantum of the tax exempt benefit transferred from the RPP to the RRSP/RRIF, as long as no other monies have been co-mingled with the tax exempt RPP funds, payments from the RRSP/RRIF can be made by the carrier without withholdings. Where co-mingling has occurred, it will be necessary to trace the amounts originating from exempt income.

If the carrier does not have sufficient information to confirm that the RRSP amount is tax-exempt, the Indian can request a waiver from the CCRA. The CCRA will require written confirmation of the Indian's periods of exempt employment and the corresponding tax-exempt RPP benefit that was transferred to the registered vehicle. This information would most likely come from the status Indian's employer or RPP administrator. If the RRSP/RRIF funds originating from an exempt RPP benefit have been commingled with other funds, the CCRA must be provided with the appropriate tracing information.

Reasons: Information provided by Trust Accounts Division (formerly Source Deductions) of Assessment & Collections Branch