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.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department. Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
SUBJECT: PRAIRIE TAX CONFERENCE QUESTION RE CHANGING DESIGNATION SECTION: 60(j.2), 220(3.2), REG 600]
PRAIRIE TAX CONFERENCE
DRAFT/EBAUCHE May 19 & 20, 1992
Question 19
A taxpayer receives pension income of $6,000.00 in 1990 and purchases an R.R.S.P. in February 1991. The taxpayer also elects under 60(j.2) to transfer $6,000.00 to a spousal R.R.S.P. and as a consequence does not claim a pension deduction.
Can the taxpayer change the election from $6,000.00 to $5,000.00 in order to use the pension deduction and carry forward to 1992 a deduction in the amount of $1,000.00 for the contribution to a spousal R.R.S.P.?
Can the taxpayer change his election even after the Notice of Assessment has expired?
If not, will the Fairness Package permit a late amendment to the election?
Department's Position
A deduction under paragraph 60(j.2) of the Income Tax Act is permitted for registered pension and deferred profit sharing plan amounts paid on a periodic basis and brought into income in the year, transferred to a spousal R.R.S.P. for that same year, and "designated" in the taxpayer's return of income for the year. The maximum amount which may be deducted is $6,000.00.
There is no provision in the Income Tax Act which will permit a taxpayer to change the amount contributed to a spousal R.R.S.P. and designated in the return. While the Fairness Package, and in particular subsection 220(3.2) of the Act, permits the Minister to grant permission to a taxpayer to amend an "election", the word "election" refers to a specific option permitted under the terms of certain provisions in the Income Tax Act and is not synonymous with the word "designation". The elections to which subsection 220(3.2) applies will be prescribed by Regulation and the current draft Regulation 600 does not include a designation under paragraph 60(j.2).
Author: P. Spice
May 28, 1992
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