Income Tax Severed Letters - 2022-01-05

Ruling

2021 Ruling 2021-0876671R3 - Transfer between US pension plans

Unedited CRA Tags
6(1)(g), 56(1)(a), 56(2), 110(1)(f)(i), 207.6(5), 248(1) "disposition", 248(1) "SDA", 248(1) "RCA", 248(1) "EBP", 153(1), Article XVIII of Canada-US tax treaty
Summary Under
Tax Topics - Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(a) - Subparagraph 56(1)(a)(i)
the transfer of a portion of the assets and Canadian beneficiaries from an old to a new US pension plan did not result in receipt under s. 56(1)(a)
Summary Under
Tax Topics - General Concepts - Payment & Receipt
no constructive receipt to Canadian beneficiaries where the transfer of a portion of the assets and Canadian beneficiaries from an old to a new US pension plan
Summary Under
Tax Topics - Treaties - Income Tax Conventions - Article 18
the transfer of a portion of the assets and beneficiaries from an old to a new US pension plan did not result in taxable income under the IRC
Summary Under
Tax Topics - Income Tax Act - Section 207.6 - Subsection 207.6(5.1)
Reg. 6804 exclusion applied

Principal Issues: Whether a proposed transfer of assets and liabilities from a US 401(a) pension plan to another US 401(a) pension plan in respect of certain Canadian participants would be taxable to the Canadian participants pursuant to paragraph 6(1)(g) or subparagraph 56(1)(a)(i)?

Position: No.

Reasons: The Canadian participants will not receive or constructively receive any amounts as a result of the transfer.

Technical Interpretation - External

18 November 2021 External T.I. 2021-0917841E5 F - Traitement fiscal d’un revenu d’une emphytéose

Summary Under
Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Disposition
the granting of an emphyteusis is a part disposition of property rather than a lease

Principal Issues: Est-ce que la position énoncée dans l’interprétation technique 2013-0487791E5 représente la position de l’Agence du revenu du Canada? / Whether the position expressed in technical interpretation 2013-0487791E5 represent the position of the Canada Revenue Agency.

Position: Oui / Yes.