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.
| |
October 19, 1990 |
| Mr. R.J.L. Read |
Current Amendments and |
| Director General |
Regulations Division |
| Rulings Directorate |
D.C. Burnett |
| |
957-2078 |
| |
F-3691 |
Section 6801 of the Income Tax Regulations
This is in response to the memorandum of May 29, 1990 prepared by J.P. Simard concerning the above subject.
Our comments with respect to the points raised in the memorandum are as follows:
1. The Department of Finance has published proposed amendments to section 6801 of the Income Tax Regulations in Part I of the Canada Gazette (see attached). These proposed amendments correct the differences in the English and French versions referred to in the memorandum.
2. We do not agree that the French version of clauses 6801(a)(iv)(A) and (B) of the Regulations do not require mandatory payment of the accrued income of the plan or trust to the employee each year. Section the Regulations provides the rules under which a plan or arrangement is a "prescribed plan or arrangement" for the purposes of paragraph (1) of the definition "salary deferral arrangement" in subsection 248(1) of the Income Tax Act. Clause 6801(a)(iv)((A) and (B) of the French version of the Regulations stipulate that the plan or arrangement will be prescribed "si le mécanisme ou le regime prévoit aussi". This means that the plan or arrangement will be prescribed "if the plan or arrangement also provides" that the accrued income is paid to the employee each year. We do not believe that this "if" clause is other than a mandatory requirement, the same as is in the English version.
3. The proposed amendments referred to in 1 above also amend subparagraph 6801(a)(vi) of the Regulations. We have advised CCH of the error in paragraph 6801(b) of the Regulations.
We appreciate your bringing these matters to our attention.
R.G. D'AurelioDirectorCurrent Amendments andRegulations Division
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