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.
XXX
This is in reply to your letters of April 17 and May 16, 1989, concerning the Indian Remission Order and the withholding tax requirements respecting pension plan payments received by Indians.
The Indian Remission Order currently covers the 1983 to 1987 taxation years and provides for remission of income tax payable in respect of periodic pension payments received by Indians in respect of employment income earned on a reserve. This Remission Order applies in all of Canada, whether the Indian is living on or off the reserve.
On April 17, 1989, the Honourable Michael Wilson, Minister of Finance, announced his intention to extend the Indian Remission Order to the 1988 and 1989 taxation years. A copy of the Department of Finance release is enclosed for your information.
We are not in a position to comment on, the Pension Trust Funds documentation you submitted as the situation apparently concerns a proposed transaction involving an identified insurer and a specific Pension Plan and accordingly would most appropriately be considered through the mechanism of an advance income tax ruling as discussed in Information Circular 70-6R and the Special Release thereto (copies attached). A submission requesting an advance income tax ruling should include the relevant trust and other documentation to enable us to deal with the specific case.
As regards withholding tax, whether or not the payments are subject to tax the payor would be required to withhold tax pursuant to paragraph 153(1)(b) of the Income Tax Act and sections 101 and 200 of the Income Tax Relations. The payor could, however, contact the staff at the local District Taxation Office who may issue a waiver with respect to the withholding requirements in appropriate circumstances.
With reference to your question in item 6, we would suggest you discuss the matter with your legal advisors.
We trust this will be of assistance to you.
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 1989
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 1989
Email this Content