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.
PRINCIPAL ISSUES:
Type of, and reporting requirement for income from LIF
POSITION TAKEN:
60(l) annuity report on T4A
REASONS FOR POSITION TAKEN:
Act; position of Other returns and Guides
LEGAL:
na
FINANCE OPINION:
na
JURISPRUDENCE:
na
RCT PUBLICATIONS:
na
HAA NUMBER:
7251-1
January 27, 1994
Head Office Head OfficeGuy Levesque Rulings DirectorateChief (613) 957-8953Other Returns and Guides
Reporting of Life Income Funds ("LIF")
This is further to our discussions of January 21, 1994, regarding the reporting of LIF annuities. Attached is a copy of our response to XXXXXXXXXX
Also, XXXXXXXXXX had called concerning the method of reporting and whether the recipient of such income could claim the pension credit.
As indicated in the attached letter, we stated that if such income was transferred from a RRIF to a life annuity it would be transferred pursuant to paragraph 60(l) of the Act. Amounts received from such annuities are included in income pursuant to paragraph 56(1)(d.2) of the Act, and there is no deduction for the capital element of each payment since it was purchased with tax sheltered funds. Pursuant to subsections 118(3) and 118(7) of the Act, the recipient can claim the pension credit on such income if he is 65 years of age, and if he is not 65, he can claim the pension credit if the income was received as a consequence of the death of his spouse.
for DirectorFinancial Industries DivisionRulings Directorate
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