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: not relevant
Position: n/a
Reasons:n/a
5-962030
XXXXXXXXXX G. Middleton
(613) 957-2122
September 26, 1997
Dear Sir:
This is in reply to your letter regarding amounts that you may receive as a result of legal action taken against your former employer.
Since your request deals with a factual transaction, we are unable to provide our views with respect to the specific transaction which is the subject of your request. As indicated in paragraph 22 of Information Circular 70-6R3 (copy enclosed), when a request for a technical interpretation relates to a specific proposed transaction, an advance ruling rather than a technical interpretation must be requested. The tax services offices of Revenue Canada consider requests for written opinions on completed transactions and provide over-the-counter advice and assistance on general matters.
However, we are prepared to offer the following general comments which may apply to your situation.
- We are enclosing copies of Interpretation Bulletins IT-124R6, IT-337R2, IT-365R2 and IT-420R3 (and the Special Release to IT-420R3) which provide information relating to your enquiry.
- It is a question of fact whether or not a person is in fact a resident of Canada at any particular time and such a determination can only be made after reviewing all of the facts surrounding the person's circumstances.
- In general, paragraphs 56(1)(l.1) and 60(o.1) of the Income Tax Act deal with the income inclusion and deduction, respectively, for amounts received by an individual as an award or reimbursement in respect of legal expenses paid to collect or establish a right to a retiring allowance in respect of employment.
We trust the enclosed publications will be of assistance to you. If you should have any further questions, please call the writer Greg Middleton at (613) 957-2122.
Yours truly,
for Director
Reorganizations and International Division
Income Tax Ruling and
Interpretations Directorate
Policy and Legislation Branch
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.../cont'd
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© Her Majesty the Queen in Right of Canada, 1997
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© Sa Majesté la Reine du Chef du Canada, 1997
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