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.
REVENUE CANADA TAXATION MEMORANDUM
TO Head Office-Specialty Rulings Directorate 88 Metcalfe Street Ottawa, Ontario
FROM Ottawa District Office
Source Deductions
(Non-Resident Tax)
E. Delorne
598-2141
RE: Registered Retirement Income Funds
We wish to have some points clarified with concern to the treatment of payments out of R.R.I.F.(s) for Part XIII tax purposes.
Should the R.R.I.F. payments be considered as annuities or pension? Please refer to your memorandum number 7-1721 dated April 27, 1987 directed to Eric Hammond of Source Deductions, Head Office.
Another point that we wish to have clarified is the phrase "but does not include a payment that is not a periodic payment or any annuity the cost of which was deductible for purposes of taxation in the contracting state in which it was acquired", Article XVIII, paragraph 4, explanation of the term "annuities" in the Canada - U.S. Tax Convention. Does this mean that since the cost of an annuity or R.R.I.F. was deductible from the income of the registered owner through contributions to a R.R.S. P., the payments are to be considered as pension income?
In the Canada - U.K. Tax Convention, it would seem that the R.R.I.F. payments would qualify as annuities under the definition of the term "annuities" in paragraph 4 of Article XVII. Is this the correct interpretation?
Again, since there are variances in the length of term of each R.R.I.F. contract, can you provide a minimum length of time that the contract must cover before it qualifies for the lower rate of tax.
E. Delorme Source Deductions Non-Resident Tax
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 1988
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 1988
Email this Content