9 December 1991 Income Tax Severed Letter 9130585 - DSLP for Teachers — Calculation of Six Months

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.

S00669
                                              5-913058
                                              P. Spice
                                              (613) 957-8953
 24(1)Attention:  19(1)

December 9, 1991

Dear Sirs:

Re: 19(1) Deferred Salary Leave Plan Advance Income Tax Ruling 3-2140

We are writing in reply to your letter of October 28, 1991, in which you ask us to reconsider an interpretation of the six consecutive months requirement imposed by Regulation 6801 of the Income Tax Act. As you point out, we had required that teachers schedule their leaves of absence during the September to June school year.

We received a number of submissions on this issue which clearly indicated that if July or August (or the other months teachers may not report to work under a three- semester system) were not included in the calculation of the duration of the leave of absence, teachers would be severely restricted in their ability to participate in deferred salary leave plans.

We, therefore, re-evaluated our position and have decided that if a teacher is employed but, under his or her contract of employment, is not required to report to work for a period between semesters, the time between semesters may be included in the calculation of the minimum six month leave of absence.

We trust this position responds to your concerns.

Yours truly,

for Director Financial Industries Division Rulings Directorate

c.c. Winnipeg District Office

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