28 November 1989 Ministerial Correspondence 32794 F - Transfer of Retiring Allowances

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.

November 28, 1989

Dear Sirs:

19(1)

This is in reply to your letter of November 2, 1989 wherein you requested an advance income tax ruling on behalf of 24(1)

As discussed on November 22 19(1) Harding we cannot provide an advance ruling that the amount to be transferred is a retiring allowance, as defined in the Act, 24(1)

While we cannot provide a ruling that the amount paid out of the plan was a retiring allowance, we can state that, in our opinion, a payment out of a plan of a nature described in your submission would not be a retiring allowance for purposes of the Act.

It is also our view that a person will not generally be considered to have retired from, or lost, his office or employment where control of his employer has changed but he has been retained in his same or another position with the employer.  Accordingly a retiring allowance, as defined in the Act, could not be paid at that time.

We trust our comments will be satisfactory to your needs.

Yours truly,

for DirectorFinancial Industries DivisionRulings Directorate