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 previous employer (the RCMP) related to current employer (the Bank of Canada) for purposes of retiring allowance.
Position: Same employer.
Reasons: Previous positions.
XXXXXXXXXX 5-980815
Fouad Daaboul
June 8, 1998
Dear Sir:
Re: Retiring allowance and related employer
We are writing in response to your letter of March 25, 1998, wherein you requested whether the R.C.M.P. is considered to be a person related to the Bank of Canada for purposes of retiring allowance as defined under subsection 248(1) of the Income Tax Act (the “Act”).
We are unable to provide an opinion which binds the Department except in the context of an advance income tax ruling. We can provide, however, the following general comments.
Subparagraph 60(j.1)(ii) of the Act provides that the amount of a retiring allowance eligible for a deduction upon a transfer to a registered retirement savings plan is calculated by reference to the number of years of employment with the current employer and with "a person related to the employer".
In our view that it is necessary to satisfy the conditions in only one of paragraphs 251(2)(b) or 60(j.1)(iv) in order for two employers to be considered "related" at law for purposes of paragraph 60(j.1) of the Act.
It is our general position that if employers are controlled by Her Majesty in Right of Canada, then the employers are related. Employment with various Federal Departments, Agencies or Crown Corporations is considered to be a single employment since the employer in each case would be the Treasury Board of Canada. As consequence, Employment with the Bank of Canada as well as the R.C.M.P. is considered to be a single employment since they are ultimately controlled by the Government of Canada.
We trust these comments are satisfactory to your needs.
Yours truly,
Paul Lynch
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, 1998
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, 1998
Email this Content