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: Can the trustee of an EPSP be a corporation or individual?
Position: Either appears possible.
Reasons: No restrictions under the Act.
XXXXXXXXXX 5-982674
Fouad Daaboul
Attention: XXXXXXXXXX
January 7, 1999
Dear Sirs:
Re: Trustee of an Employees Profit Sharing Plan ("EPSP")
This is in reply to your letter of October 16, 1998, wherein you requested a general opinion on the status of a trustee under an EPSP. You indicated that where a plan is a deferred profit sharing plan ("DPSP"), paragraph 147(2)(g) of the Income Tax Act (the "Act") requires the trustee of the DPSP to be a corporation licensed or authorized to carry on in Canada the business of offering to the public its services as trustee or, in the absence of such a corporation, there shall be at least three trustees who shall be individuals. However, you found no requirements under the Act as to the status of a trustee of an EPSP.
The Act does not provide for registration of an EPSP and thus provides no registration requirements similar to a DPSP. An EPSP is defined in subsection 144(1) of the Act to mean an arrangement under which payments are required to be made to a trustee under the arrangement. Since there is no requirement under the Act as to the status of a trustee under an EPSP, it is our opinion that the trustee could be any person.
We trust our comments will be of assistance to you.
Yours truly,
Paul Lynch
for Director
Financial Industries Division
Income Tax Rulings
and Interpretations Directorate
Policy and Legislation Branch
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