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 gross or net amount of DSLP interest income is taxable to participant in year earned.
Position: Net amount.
Reasons: "Income of the trust" in a year is the net amount after expenses of the trust.
XXXXXXXXXX 991652
Attention: XXXXXXXXXX
October 14, 1999
Dear Sirs:
Re: XXXXXXXXXX
Deferred Salary Leave Plan
We are writing to clarify a comment in our letter to you of August 5, 1999. We indicated that in respect of clause XXXXXXXXXX of the above-noted plan, the interest income is taxable to a participant in full in the year it is earned.
In fact, the administration costs or expenses of the plan may be deducted from the gross interest income and it is only the net amount paid to the participant that is taxable as employment income in the year the interest income is earned.
We trust this explains our position and that our previous comment has not caused any inconvenience.
Yours truly,
Patricia Spice
for Director
Financial Industries Division
Income Tax Rulings
and Interpretations Directorate
Policy and Legislation Branch
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© Her Majesty the Queen in Right of Canada, 1999
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