Income Tax Severed Letters - 2020-12-30

Technical Interpretation - External

1 September 2020 External T.I. 2019-0832221E5 - Subscriber of an RESP

Unedited CRA Tags
146.1(1) definition of "subscriber", "education savings plan"; 248(1) definition of "individual"
Summary Under
Tax Topics - Income Tax Act - Section 146.1 - Subsection 146.1(1) - Subscriber - Paragraph (a)
a corporate charity cannot establish RESPs

Principal Issues: Whether an incorporated registered charity can enter into an RESP.

Position: No.

Reasons: Except for a public primary caregiver, a corporation is prohibited from entering into an RESP as a subscriber.

Technical Interpretation - Internal

21 August 2020 Internal T.I. 2019-0834911I7 - Qualified Retroactive Lump Sum Payments

Unedited CRA Tags
110.2; 120.31
Summary Under
Tax Topics - Income Tax Act - 101-110 - Section 110.2 - Subsection 110.2(1) - Qualifying Amount - Paragraph (a) - Subparagraph (a)(i)
an arbitration award made in the normal course following a collective bargaining process could qualify for lump-sum averaging

Principal Issues: Whether amounts received through an arbitration process, as part of a collective bargaining process would be a qualifying amount, as defined under subsection 110.2(1).

Position: Likely yes, assuming all other conditions are met.

Reasons: An amount received under an arbitration award can be a qualifying amount.