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.
Principal Issues:
None.
Position TAKEN:
Reasons FOR POSITION TAKEN:
Royal Canadian Mounted Police
Compensation and Member Services Section
1200 Vanier Parkway5-940725
Ottawa, Ontario C.Chouinard
K1A 0R2
Attention: J.D.M. Séguin, Inspector
May 31, 1994
Dear Sir:
Re: Taxation of Pension Income Received by Status Indians
We are writing in response to your letters of March 16 and April 14, 1994, wherein you requested further clarification regarding the taxation of pension income received by status Indians.
More specifically, you have asked us to confirm that the method you propose to use to calculate the tax-exempt portion of pension benefits received by retired status Indians from the RCMP defined benefit pension plan is acceptable to the Department. We have reviewed your most recent letter which outlines your proposed policy in this respect and consider the proposed method of prorating the pension benefits to determine the tax-exempt part to be acceptable. Should you have any questions regarding the method of reporting the tax-exempt portion of the pension income, we suggest you contact Mr. Ray Cousineau of the Source Deductions Division.
With respect to your query concerning the application of the Indian Act tax exemption where the pension benefits are paid not to the retired employee but to the surviving spouse of such an employee, the pension income will remain tax-exempt only if the person who receives the pension benefits is a status Indian.
We trust that these comments will be of assistance.
Yours truly,
R. Albert
for Director
Business and General Division
Rulings Directorate
Legislative and Intergovernmental
Affairs Branch
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