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.
5-910465
Dear Sirs:
This is in reply to your letter of February 13, 1991 concerning payments to non-residents from registered retirement savings plans ("RRSPs") and registered retirement income funds ("RRIFs").
Your particular concern relates to the Special Release to Information Circular 76-12R4 and the comment therein that the caption "Periodic Annuity Payments" includes payments out of... RRSPs and RRIFs if the payments are made on a periodic basis. It is your understanding that such periodic payments represent periodic pension payments for the purposes of the tax treaties.
In the Canada-U.K. Income Tax Convention (1978) and the Canada-U.S. Income Tax Convention (1980), the term "pension" includes any payment under a .... retirement plan ... A "retirement plan" is generally considered to include an RRSP and a RRIF. Consequently, periodic payments out of an RRSP or a RRIF would normally represent periodic pension payments for the purposes of the U.K. and U.S. Tax Conventions.
For the purposes of the tax treaties that Canada has entered into with countries other than the U.K. and the U.S., it is our view that periodic payments out of an RRSP or a RRIF would normally represent periodic annuity payments.
The writers of the Special Release to Information Circular 76-12R4 shall be so informed.
We trust that our comments are of assistance to you.
Yours truly,
for DirectorFinancial Industries DivisionRulings Directorate
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© Her Majesty the Queen in Right of Canada, 1991
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© Sa Majesté la Reine du Chef du Canada, 1991
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