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.
Principal Issues: The taxpayer suggested that the law be changed to allow the pension income credit where RRIF payments are received before age 65.
Position: Confirmed that under the present law, the payment would not qualify and referred issue to Department of Finance for their consideration.
Reasons: Any such change in tax law is the purview of the Tax Policy Branch at Finance.
Signed on October 5, 2006
XXXXXXXXXX
Dear XXXXXXXXXX:
Thank you for your letter received on July 17, 2006, concerning the qualification of amounts received from a registered retirement income fund (RRIF) for the pension income amount on the Income Tax and Benefit Return. I apologize for the delay in responding.
The Income Tax Act allows a taxpayer who has not reached age 65 by the end of the calendar year to claim a pension income amount if he or she has received "qualified pension income". The Act specifically defines "qualified pension income". As you noted, payments out of a RRIF, other than those that are received as a consequence of the death of the taxpayer's spouse or common-law partner, are not included in the definition.
The Canada Revenue Agency is responsible for administering and enforcing the Act and the Income Tax Regulations as enacted by Parliament. Any proposed changes to tax policy or amendments to legislation would have to be considered by the Minister of Finance and approved by Parliament. I am therefore forwarding a copy of your letter to the Honourable James M. Flaherty, Minister of Finance, for his consideration.
Thank you again for having taken the time to write.
Sincerely,
The Honourable Carol Skelton, P.C., M.P.
c.c.: The Honourable James M. Flaherty, P.C., M.P.
Minister of Finance
House of Commons
Ottawa ON K1A 0A6
Phillip Kohnen
957-2093
2006-019918
August 3, 2006
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