17 December 1999 External T.I. 9932655 - FOREIGN PLAN PRESCRIBED AMOUNT

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: To correct E9921445 dated November 10, 1999. Prescribed amount should be reported on 1999 return, not 2000 return as provided in the example.

Position:

Reasons:

XXXXXXXXXX 993265
S. E. Thomson
Attention: XXXXXXXXXX

December 17, 1999

Dear XXXXXXXXXX:

Re: SAR/SEP Plans and Pension Adjustments

We refer to our letter to you dated November 10, 1999 (E9921445) in which we stated that the SEP portion of a SAR/SEP plan gives rise to a "prescribed amount" under section 8308.2 of the Income Tax Regulations.

Please note that in the section entitled "Calculation of Prescribed Amount", a prescribed amount calculated in 1999 on 1999 compensation would be reported on the 1999 personal income tax return. We inadvertently stated that the amount should be reported on the 2000 personal income tax return.

The 1999 amount will reduce the RRSP contribution room for 2000.

We regret any inconvenience this error may have caused.

Yours truly,

P. Spice
for Director
Deferred Income Plans
Income Tax Rulings and
Interpretations Directorate