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.
DATE May 10, 1990
TO FROM
A Enquiries and Taxpayer DE Financial Industries
Division
Assistance Division D.S. Delorey
P. McNally, Director 957-3495
Attention: Monica Jones-Kisil FILE DOSSIER 7-4817 SUBJECT: OBJET: Lump Sum Payment from The Netherlands
This is with respect to your memorandum of March 15, 1990 concerning a referral from the London District Office.
As requested, we have addressed our reply to the London District Office and enclose for your files a copy of our reply.
As an aside, in paragraph one of page two of your memorandum you express the view that because the subject payment is not a periodic payment and thus is not, by virtue of Part XI of the Protocol to the Netherlands Treaty, a payment to which Article 18 of that Treaty applies, such a payment cannot be considered pension income and thus cannot qualify for rollover to an RRSP. In our view, the restrictive provisions of a reciprocal tax treaty do not necessarily apply for the purposes of the income Tax Act. For example, a lump sum payment out of a Netherlands pension plan would represent a "superannuation or pension benefit" within the meaning given to that term in subsection 248(1) of the Act. Such a payment could therefore qualify for rollover to an RRSP if, for pre-1990 rollovers, it were one described in subparagraph 6(1)(g)(iii) of the Act or, for post 1989 rollovers, the requirements in proposed paragraph 60(j) are satisfied.
Director
Financial Industries Division
Rulings Directorate
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© Her Majesty the Queen in Right of Canada, 1990
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© Sa Majesté la Reine du Chef du Canada, 1990
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