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.
July 20, 1993
| HAMILTON DISTRICT OFFICE |
HEAD OFFICE |
| A. Shields |
Financial Industries Division |
| Director |
D.S. Delorey (613) 957-8953 |
Attention: Thomas Koval
Client Services
XXXXXXXXXX Italian Pension Payment of Accrued Pension
This is in reply to your FAX transmission of July 7, 1993 concerning a payment of $ XXXXXXXXXX from an Italian pension plan.
The payment represented a "catch up" payment to compensate for the fact that XXXXXXXXXX did not receive periodic payments under the pension plan from the date he was entitled to begin receiving such payments. In addition to the $XXXXXXXXXX payment of pension income accrued over a number of years, XXXXXXXXXX began receiving, and continues to receive, periodic payments from the Italian plan. He contributed $XXXXXXXXXX payment to his registered retirement savings plan ("RRSP") and claimed a deduction under paragraph 60(j) of the Income Tax Act (the "Act"). It is your view that the payment is "a benefit that is part of a series of periodic payments" and therefore not eligible to be deducted under paragraph 60(j).
Our Comments:
We agree that the payment is not one that qualifies for rollover to an RRSP under paragraph 60(j) of the Act. XXXXXXXXXX the better argument in our view is that the $XXXXXXXXXX payment of pension income accrued over a number of years is a benefit that is part of a series of periodic payments. Support for this argument can in our view be found in the position taken by the courts that a "catch up" payment in respect of missed alimony or maintenance payments is an amount payable on a periodic basis. This position is reflected in the latter part of paragraph 13 of IT-118R3. The Department also takes this position in respect of a lump sum payment of accrued amounts due under one of the plans mentioned in paragraph 6(1)(f) of the Act; i.e., that such a payment is an amount payable on a periodic basis.
for DirectorFinancial Industries DivisionRulings DirectorateHAA 7255-6
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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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