6 June 1991 Internal T.I. 911437 F - Long-Term Disability Plan

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.

SUBJECT:  19(1) Application of ITAR 19 24(1)

Further to our telephone conversation of June 3, 1991, we are forwarding a copy of the request for an advance income tax ruling dated May 3,1991 submitted on this taxpayer's behalf by

24(1)

24(1)

He will, in due course, be forwarding copies of the LTD plan plus any amendments thereto, for your determination as to whether the plan qualifies as an exempt plan or an amended plan as discussed in IT-428.

Our Comments

From our review of the relevant documentation attached to the ruling request, it is our view that   19(1)   letter of February 4, 1991, establishes the fact that the "event" (as discussed in paragraph 3 of IT-428) that caused the taxpayer's current disability occurred prior to 1974.  As a consequence, whether or not the taxpayer receives 100% of his disability benefits tax free, or apportioned on the basis discussed in paragraph 21 of IT-428, will depend on the status of the LTD plan.

Should you require further information in this regard, please contact the writer.

for DirectorBusiness and General DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch