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: In 60(j.1) does employer include former employer
Position: Yes
Reasons: Routine
XXXXXXXXXX 970097
Attention: XXXXXXXXXX
January 21, 1997
Dear Sirs:
Re: Transfer of retiring allowances to RRSPs
This is in reply to your facsimile dated January 10, 1997, in which you requested clarification of the meaning of the term "employer" as used in Paragraph 60(j.1) of the Income Tax Act (the "Act"). In particular you wish to know if this covers a former employer of an individual who is currently employed by another employer.
In our opinion the term "employer" as used in 60(j.1) of the Act includes a former employer of a taxpayer. Accordingly, an individual who receives a retiring allowance from a former employer at a time when the individual is employed by another unrelated employer, may transfer all or a portion of the amount received to an RRSP to the extent otherwise permitted under the provisions of paragraph 60(j.1).
We trust this is satisfactory to you.
Yours truly,
for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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