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.
XXXXXXXXXX
Attention: XXXXXXXXXX
Dear Sirs:
RE: Cumulative Net Investment Loss ("CNIL")
This is in reply to your letter of June 25, 1993 wherein you request our opinion as to whether the income from an Employee Profit Sharing Plan (EPSP) as shown in Box 35 of Form T4PS Supplementary should be included in the calculation of the CNIL. We apologize for the delay in replying to your letter.
The CNIL of an individual at the end of a taxation year is defined at subsection 110.6(1) of the Act as the amount by which the aggregate of the individual's investment expenses, as defined in subsection 110.6(1) of the Act, for the year and prior years ending after 1987 exceeds the aggregate of the taxpayer's investment income, as defined in subsection 110.6(1) of the Act, for such years.
The income originating from an EPSP must be part of the "investment income" as defined in subsection 110.6(1) of the Act to be included in the calculation of the CNIL. Such income will qualify if it consists of income from property which is included in the computation of the individual's income.
The instructions found on Form T4PS Supplementary state that the amount in Box 35 should be entered on line 104 of the income tax return as "other employment income". Boxes 31, 32 and 33 include amounts of interests and dividends, which are income from property.
It is therefore our view that the "employment income" from an EPSP is not included in the calculation of the individual's CNIL.
The above comments are an expression of opinion only and are not binding on the Department as explained in paragraph 21 of Information Circular 70-6R2 dated September 28, 1990. We trust however that they are of assistance to you.
Yours truly,
for the Director Financial Industries DivisionRulings Directorate
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© Her Majesty the Queen in Right of Canada, 1993
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© Sa Majesté la Reine du Chef du Canada, 1993
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