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: Are amounts paid from an RRSP to an annuitant who is under age 65 eligible for the pension tax credit?
Position: No.
Reasons: Provisions of subsection 118(3) and definition of "qualified pension income" in subsection 118(7).
May 17, 2007
XXXXXXXXXX
Dear XXXXXXXXXX:
Thank you for your letter received on April 12, 2007, concerning registered retirement savings plan (RRSP) withdrawals and their eligibility for the pension income tax credit.
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," and the Act specifically defines that term. As you noted, payments out of an RRSP, 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 and therefore are not eligible for the pension income amount.
The Canada Revenue Agency is responsible for administering and enforcing the Income Tax 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
Gary Allen
613-952-9853
May 10, 2007
2007-023301
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