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.
19(1) A.B. Adler
613 957-8962
June 6, 1989
Dear Sirs:
This is in reply to your letter dated May 23, 1989 and is further to ours of March 14, 1989, concerning your proposed deferred salary leave plan (Plan).
Our comments with respect to your additional two questions follow.
We confirm that deferred salary under your Plan that is paid to a participating employee in the period of leave will be subject to regular tax withholding on each such payment made in that period.
As indicated in item 3 of our March 14, 1989 letter, interest earned on a participating employee's deferred salary under the Plan for a year is considered to be employment income for that year. We expect that the payor of such interest rather than the employer would report such employment income on the appropriate T4 information slip, and this slip would be in addition to the T4 slip otherwise completed by the employer for participating employees under the Plan.
We trust that our comments are sufficient for your purposes.
Yours truly.
for Director Financial Industries Division Rulings Directorate
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© Her Majesty the Queen in Right of Canada, 1989
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© Sa Majesté la Reine du Chef du Canada, 1989
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