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.
Revenue Canada Taxation Head Office
XXX
B. Fioravanti (613) 957-8962
October 16, 1987
Dear Sirs:
Re: Teachers Deferred Salary Retirement Plan (the "Plan")
Your letter of June 5, together with attachments concerning the above captioned matter was referred to this Division for reply. Reference was made to an earlier letter dated March 23, concerning the coming into force provisions of Clause 78(1) of Bill C-23 as passed by the House of Commons on December 17, 1986 and its effect on the Plan.
Our reply in the same sequence as your questions is as follows:
1) All agreements entered into after February 25, 1986 will be subject to the salary deferral arrangement rules. For agreements entered into prior to February 26, 1986, the deferred amounts for services rendered up to July 1986 will be exempt from those rules and need not be included in the participant's income until the earliest of the dates referred to in Ruling A of Advance Ruling E-883 March 27, 1985.
All members of your plan will be subject to the salary deferral arrangement rules for services rendered after June 26, 1986 because, pursuant to XXXX.
Therefore income deferred in respect of services rendered after June 26, 1986 will be required to be included in the participants' income for the year of deferral.
2) There is no provision in the Income Tax Act (the "Act") to grant special tax consideration to deferred earnings that are required to be included in 1986 or 1987 taxable income regardless of the date of Royal Assent.
3) There are no provisions in the Act to permit the transfer of funds in the Plan to a registered retirement savings plan.
We trust that the above will be of assistance to you.
Yours truly,
for Director Financial Industries Division Rulings Directorate Legislative and Intergovernmental Affairs Branch
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© Her Majesty the Queen in Right of Canada, 1987
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© Sa Majesté la Reine du Chef du Canada, 1987
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