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:
Is termination payment a retiring allowance
Position:
Payment per s58 of ESA (Ont) is a retiring allowance
Reasons:
Previously taken
962964
XXXXXXXXXX D. Duff
Attention: XXXXXXXXXX
August 27, 1996
Re: XXXXXXXXXX
This is in response to your letter of April 10, 1996, which was forwarded to this Directorate on August 8, 1996, regarding the termination of employment of the aforementioned client.
The situation described in your letter is a proposed transaction which should be the subject of a request for an advance income tax ruling. However, we can make the following general comment.
As discussed by telephone on August 26, 1996, (XXXXXXXXXX/Duff), we have previously taken the position that severance pay as defined under section 58 of the Ontario Employment Standards Act is a retiring allowance.
We trust this is satisfactory.
Yours truly,
for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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