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 retiring allowance can be taxed in year subsequent to year received.
Position:
No
Reasons:
The law.
Industry Canada
Room 252G, 2nd Floor West
235 Queen Street 962931
Ottawa, Ontario P. Spice
K1A 0H5
Attention: Mr. Leo Major, Manager
Pay & Benefits
September 12, 1996
Dear Sir:
Re: Reassessment of Retiring Allowance
This is in reply to your letter of June 12, 1996, in which you ask whether an amount of a retiring allowance received by an individual in and assessed as taxable income for 1995, can be reassessed by the Department as income taxable in 1996.
This will confirm that, in accordance with subparagraph 56(1)(a)(ii) of the Income Tax Act, an amount of a retiring allowance is taxable income for the year in which it is received.
We trust our 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, 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