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:
Ruling request with respect to payment of retiring allowance to spouse
Position:
No ruling provided. We assumed they did not wish to proceed with the request
Reasons:
Representative was asked to provide further substantiation that a retiring allowance was appropriate in the circumstances. No reply was received and it was assumed the request was withdrawn.
XXXXXXXXXX 971013
Attention: XXXXXXXXXX
June 23, 1997
Dear Sirs:
Re: XXXXXXXXXX
Advance Income Tax Ruling Request
This is in reply to your letters of April 9 1997, and May 29 1997, and our telephone conversation of June 6, 1997 (XXXXXXXXXX - Harding) in respect of the above noted ruling.
As discussed in our telephone conversation, when a proposal is made to pay a retiring allowance to an individual where no annual remuneration has been paid to the individual over a significant period of time, the Department must be satisfied that the individual has, in fact, been employed by the payor, that the payment is being made as a consequence of a loss of that employment, that the amount being received is reasonable in relation to that employment and that the individual has terminated the employment on or before the individual's retirement. We also noted that we could not provide a ruling that a retiring allowance was deductible by an employer for a year where the amount had already been accrued as an expense of the year.
During our conversation you acknowledged the Department's concerns and advised that you would provide us with further directions. However, to date we have not received any further information and we presume you do not wish to proceed with your request. Accordingly, we are now closing our file.
Our invoice for any time spent on the request to date will be sent under separate cover.
Yours truly,
for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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