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.
| 19(1) |
File No. 5-900921 |
| |
D.S. Delorey |
| |
(613) 957-3495 |
June 5, 1990
19(1)
This is in reply to your undated letter concerning the amount deductible under subsection 118(3) of the Income Tax Act as a pension credit.
In particular, your concern involves a 58 year-old person receiving a disability pension under the Canada Pension Plan. She also has a registered retirement savings plan ("RRSP") and you ask if she can use the RRSP funds to generate pension income that would qualify for the pension credit deduction by
a) acquiring a life annuity, or
(b) transferring the RRSP funds to a registered retirement income fund ("RRIF").
The charts on page 30 of the 1989 Ontario General Tax Guide suggest to you that the life annuity payments would qualify but not the RRIF payments, and you ask if this is correct.
OUR COMMENTS
We presume that the "life annuity" you refer to is the one mentioned in the first paragraph of each of the charts. This life annuity is one originating out of a pension fund or plan, not out of an RRSP. As indicated in charts 2 and 3, payments out of an RRSP or an RRIF to a person who is under 65 do not qualify for the pension credit deduction unless such payments are received because of the death of the recipient's spouse.
We trust our comments are of assistance.
Yours truly,
W. Douglas for DirectorFinancial Industries DivisionRulings Directorate
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, 1990
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, 1990
Email this Content