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:
Whether withholding tax (paragrap153(1)(j)) applies to lump sum payment out of a RRSP to Canadian residents after the death of the annuitant?
Position TAKEN:
No
Reasons FOR POSITION TAKEN:
No amount required to be withheld under reg. 100(1), 103(4) and 103(6).
5-950018
XXXXXXXXXX Robert Gagnon
Attention: XXXXXXXXXX
February 16, 1995
Dear Sirs:
Re: RRSP
This is in reply to your letter of December 21, 1994 wherein you requested whether the Income Tax Act requires a person to withhold tax from lump sum payments out of a registered retirement savings plan ("RRSP") under certain circumstances.
Pursuant to paragraph 153(1)(j) of the Income Tax Act and subsections 100(1), 103(4) and (6) of the Income Tax Regulations, no amount of tax is required to be withheld by the payer of a lump sum payment to Canadian residents out of a RRSP after the death of an annuitant.
The foregoing opinion is not a ruling and, in accordance with the guidelines set out in Information Circular 70-6R2 dated September 28, 1990, is not binding on the Department.
We trust our comments will be of assistance to you.
Yours truly,
for Director
Financial Industries Division
Rulings Directorate
Policy & Legislation Branch
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