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 past service must be bought back in order to be counted for the purpose of determining RRSP limits.
Position TAKEN:
Yes
Reasons FOR POSITION TAKEN:
60(j.1)
National Defence
National Defence Headquarters
7th floor, North Tower 5-951640
101 Colonel By Drive M. Shea-DesRosiers
Ottawa, Ontario
K1A 0K2
Attention: Linda Roos
Civilian Personnel Officer
(Administration)
July 12, 1995
Dear Madam/Sir:
Re: Buying back past services
This is in reply to your facsimile of June 20, 1995 concerning the above-mentioned subject.
Subparagraph 60(j.1)(v) of the Income Tax Act indicates when two employers who are not related will be considered to be related for the purpose of recognizing previous years of service. In our view, it is only where the employee buys back the whole or part of past service that all the years can be counted for the purpose of the calculation of the amounts transferable to an RRSP pursuant to paragraph 60(j.1) of the Act.
We trust the above comments will be of assistance to you.
Yours truly,
for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 1995
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 1995