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:
Concerns clarification on the meaning of "periodic pension payment" as defined in section 5 of the Income Tax Conventions Interpretations Act (the "ITCIA") with respect to a registered retirement income fund ("RRIF") that is established in a year.
Position:
Where property or funds are transferred to a RRIF in a particular year, both the "minimum amount" and the fair market value of the RRIF, as referred to in subparagraphs (iii) and (iv) of paragraph (c) under the definition of "periodic pension payment" in section 5 of the ITCIA, are determined on the assumption that the transfer took place immediately before the beginning of the particular year.
Reasons:
This is a technical interpretation of the law and it is in line with the explanatory notes issued by the Dept. of Finance when this definition was introduced in the ITCIA.
951979
XXXXXXXXXX G. Middleton
(613) 957-2122
Attention: XXXXXXXXXX
January 30, 1996
Dear Sirs:
This is in reply to your letter of July 19, 1995 concerning clarification on the meaning of "periodic pension payment" as defined in section 5 of the Income Tax Conventions Interpretations Act (the "ITCIA") with respect to a registered retirement income fund ("RRIF") that is established in a year. We apologize for the delay in our response.
Where property or funds are transferred to a RRIF in a particular year, it is our opinion that both the "minimum amount" and the fair market value of the RRIF, as referred to in subparagraphs (iii) and (iv) of paragraph (c) under the definition of "periodic pension payment" in section 5 of the ITCIA, are determined on the assumption that the transfer took place immediately before the beginning of the particular year.
We trust the above comments satisfactorily answer your enquiries.
Yours truly,
for Director
Reorganizations and Foreign 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, 1996
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, 1996
Email this Content