12 December 1989 Ministerial Correspondence 59184 F - Employee Sick Leave Payment

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.

Dear Sirs:

Your letter dated October 6, 1989, addressed to Mr. Dale Baskett at the London District Office concerning employee sick leave payments was recently referred to this office for reply.

24(1)

We regret that we are unable to provide you with an advance ruling as requested since your request is somewhat incomplete.  Enclosed, for your information, is a copy of our Information circular No. 70-6R which in paragraphs 15 and 16 therein outlines the detailed procedures to be followed when requesting an advance ruling.  However, we are prepared to provide you with the following general comments

Where funds that are legally due to an employee by his employer in respect of sick day credits are at the direction of, or with the concurrence of, the employee transferred to an account for his benefit, the employee is considered to have received the amounts and the transferred funds should be included in his income at the time of each such transfer of funds.

We trust that our comments will be of assistance to you.

Yours truly,

for DirectorFinancial Industries DivisionRulings Directorate