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.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
RULINGS DIRECTORATE
CORRESPONDENCE SUMMARY
DOCUMENT TYPE:
Opinion
Principal Issues:
is an amount a retiring allowance if it is received before contributions to an RPP cease.
Position TAKEN:
no
Reasons FOR POSITION TAKEN:
Department position
LEGAL:
FINANCE OPINION:
JURISPRUDENCE:
RCT PUBLICATIONS:
IT337R2
HAA NUMBER:4749-1
XXXXXXXXXX 5-940052
February 17, 1994
Dear Sirs:
Re: Retiring Allowance Amounts eligible for transfer
to a Registered Retirement Savings Plan ("RRSP")
This is in reply to your letter of December 30, 1993 requesting an advance income tax ruling with respect to the amount you may transfer to an RRSP as a consequence of the termination of your employment.
Specific comments concerning the tax implications of a factual situation may only be provided by this Directorate where the transactions are proposed and are the subject matter of an advance income tax ruling request submitted in the manner set out in the Department's Information Circular 70-6R2. Since your request was not submitted in accordance with those requirements we can not provide a ruling as requested. However, we can provide the following general comments which may be of assistance to you.
A retiring allowance is defined as an amount received upon or after retirement from an office or employment in recognition of one's long service or in respect of a loss of office or employment. As noted in paragraph 3 of Interpretation Bulletin IT-337R2, a retiring allowance can only be received upon or after such events and not in advance.
It is the Department's position that a person has not retired or lost an office or appointment if pensionable service under a registered pension plan continues to be accrued. Accordingly, we do not accept that any amount paid before pensionable service credits are discontinued can be treated as a retiring allowance.
The above comments are based on our understanding of the law as it applies in general and may or may not apply to the circumstances of a particular case. The comments do not form an advance income tax ruling and they are not binding on the Department.
We regret that we could not provide you with a more favourable reply.
Yours truly,
for Director
Financial Industries Division
Rulings Directorate
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© Her Majesty the Queen in Right of Canada, 1994
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