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: Rollover of periodic pension payments
Position: No rollover provided for under the Act
Reasons: Subsection 60(j.02) & paragraph 147.2(4)(b)
XXXXXXXXXX
Dear XXXXXXXXXX:
I am writing in response to your letter of March 30, 1998 concerning your application for relief relating to the non-deductibility of certain past service pension contributions. The non-deductible amounts totalling $XXXXXXXXXX were paid in 1985 and 1986. Relief, under a remission pursuant to the Financial Administration Act was considered by this Department, but ultimately not provided as no remission guideline was applicable to your situation.
You have now asked us to consider your situation with consideration to subsection 60(j.02) of the Income Tax Act. This provision of the Act allows for a rollover of periodic pension payments to a Registered Pension Plan in certain defined situations, and is only applicable to payments in the 1990 and subsequent taxation years. Neither situation is applicable in your situation. The provision of the Act limiting the amount that can be deducted by you is paragraph 147.2(4)(b). We have enclosed Interpretation Bulletin IT-167R6 which contains an explanation of these provisions. In particular, we draw your attention to paragraphs 4 through 6 and to Example A in the Appendix.
I thank you for your letter and trust this letter adequately addresses your concern. Should you have any additional questions I invited you to contact Mr. Paul Lynch at (613) 957-8979.
Yours sincerely,
Denis Lefebvre
Assistant Deputy Minister
Policy and Legislation Branch
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