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.
| |
June 27, 1989 |
| Registration Directorate |
Rulings Directorate |
| Audit Section - Pensions |
Financial Industries Division |
| |
A.B. Adler |
| Attention: Mr. M. Trahan |
957-8962 |
| |
File No. 7-3991 |
Subject: Paragraph 8(1)(m.1) of the Income Tax Act (the "Act")
This is in reply to your round trip memorandum of June 8, 1989, and is further to your telephone conversation with Allen Adler on June 23, 1989, concerning excess current service pension contributions under hybrid RPPs. (Such RPPs contain both defined benefit and money purchase provisions.)
Mr. Don Joy of Current Amendments and Regulations Division confirmed with Mr. K. Horner of the Department of Finance that paragraph 8(1)(m.1) of the Act is not intended to apply to hybrid RPPs. 21(1)(a)
We are of the view that technically paragraph 8(1)(m.1) of the Act would not apply to excess current service contributions under hybrid RPPs. This follows since that paragraph requires that the taxpayer's pension entitlement or entitlements under the fund or plan be determined without any reference to the amount accumulated or contributed thereunder.
As discussed, you will bring these views to the attention of management in the Registration Directorate in order to determine whether it is necessary to pursue this matter further fm officials at the Department of Finance.
for Director Financial Industries Division Rulings Directorate
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© Her Majesty the Queen in Right of Canada, 1989
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© Sa Majesté la Reine du Chef du Canada, 1989
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