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.
November 7, 1985
Assessing Division G.F.V. Wilkie, Director
Non-Corporate Rulings Division D.S. Delorey
Tom Kissner
Disability - Benefits U.S. Railroad Retirement Act
This is in reply to your memorandum of July 22 concerning the subject matter. We apologize for the delay in replying.
Benefits (whether disability or pension) received under the U.S. Railroad Retirement Act represent a "superannuation or pension benefit" and thus are taxable pursuant to subparagraph 56(1)(a)(i) of the Act. Disability benefits received under the U.S. Railroad Retirement Act represent Tier 1 benefits. Such benefits are considered to be U.S. social security benefits to which the provisions of part 5 of Article XVIII of the Canada-U.S. Income Tax Convention (1980) apply. Hence, only one-half of disability benefits received under the U.S. Railroad Retirement Act are taxable in Canada.
for Director Non-Corporate Rulings Division
56(1)(a) Art. XVIII - new U.S. Treaty
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© Sa Majesté la Reine du Chef du Canada, 1985
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