3 May 1990 Income Tax Severed Letter RRRR275 - Whether payments made by you to the German Government Pension Plan are deductible for Canadian income tax purposes

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.

• 5- 9853 M. Shea-DesRosiers (613) 957-8953

May 3, 1990

Dear Sirs:

This is in reply to your letter of March 26, 1990 wherein you enquire as to whether payments made by you to the German Government Pension Plan (the "Pension Plan") are deductible for Canadian income tax purposes.

A Registered Pension Fund or Plan is a term defined in subsection 248(1) of the Income Tax Act and reads as follows:

• "registered pension fund or plan" means an employees' superannuation or pension fund or plan accepted by the Minister for registration for the purposes of this Act in respect of its constitution and operations for the taxation year under consideration;"

Since the Pension Plan does not meet the above requirements, the payments made by you to the Pension Plan would not be deductible under the Income Tax Act since they are not made to a Registered Pension Plan. A Registered Retirement Savings Plan ("RRSP") is also a term defined in the Income Tax Act at paragraph 146(1)(i):

• "registered retirement savings plan" means a retirement savings plan accepted by the Minister for registration for the purposes of this Act as complying with the requirements of this section".

Since the Pension Plan does not meet the requirements of section 146 of the Income Tax Act in respect of an RRSP, the payments made by you to the Pension Plan would not qualify as payments made to an RRSP and therefore would not be deductible under the Income Tax Act.

We trust the above comments will be of assistance to you.

Yours truly,

for Director
Financial Industries Division
Rulings Directorate