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.
DM'S OFFICE (2) YS # 96-02118M
ASSOCIATE DEPUTY MINISTER (1)
ADM'S OFFICE (3)
PENDING
RETURN TO INCOME TAX RULINGS
AND INTERPRETATIONS DIRECTORATE
15TH FLOOR, ALBION TOWER
Signed on April 11, 1996
XXXXXXXXXX
Dear XXXXXXXXXX:
The Honourable Jane Stewart, Minister of National Revenue, has asked me to reply to your letter of March 6, 1996, concerning your deferred salary leave plan.
In your letter you request authorization to postpone your scheduled leave of absence for one year even though the postponement will result in the scheduled leave commencing beyond the six-year limitation allowed under section 6801 of the Income Tax Regulations. Under your Deferred Salary Leave Plan Memorandum of Agreement, you contracted to participate in the plan for six years, with your leave of absence scheduled to commence immediately after the participation period. For various reasons, you would like to postpone the scheduled leave of absence for one year in accordance with the Deferred Salary Leave Plan Memorandum of Agreement.
I regret any misunderstanding that arose from your review of the Deferred Salary Leave Plan Memorandum of Agreement. Although I have not reviewed your particular plan, I can confirm that a deferred salary leave plan will qualify as a prescribed plan for purposes of the Income Tax Act only if the conditions in Regulation 6801 are met. One of the conditions requires the leave of absence to commence no more than six years after the start of the salary deferrals. The condition is very specific and does not provide for any exceptions. Since the Department has to administer the Income Tax Act as written, your scheduled leave cannot be postponed without disqualifying your plan.
I regret that the Department is unable to authorize your postponement request and I trust my comments have explained the matter you have raised.
Yours sincerely,
Pierre Gravelle, Q.C.
M. Sarazin
957-2131
961108
April 1, 1996
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