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10 October 2003 Roundtable, 2003-0037145 F- CONVENTION DE RETRAITE-- summary under Paragraph 207.6(2)(d) Summary Under Tax Topics- Income Tax Act- Section 207.6- Subsection 207.6(2)- Paragraph 207.6(2)(d) deemed withdrawals from RCA through payment of insurance benefits not subject to tax under para. ...

4 November 2003 External T.I. 2003-0042295 F- CONVENTION DE RETRAITE REVENU D'INTERET-- summary under Paragraph (b) Summary Under Tax Topics- Income Tax Act- Section 207.5- Subsection 207.5(1)- Refundable Tax- Paragraph (b) requirement to include interest income under s. 12 in computing refundable tax at end of year Is an RCA trust subject to the provisions of s. 12 in determining its refundable tax under Part XI.3? ...

24 January 2005 External T.I. 2004-0099471E5 F- Convention de retraite pour un actionnaire-employé-- summary under Paragraph 56(1)(x) Summary Under Tax Topics- Income Tax Act- Section 56- Subsection 56(1)- Paragraph 56(1)(x) Part XI.3 tax and s. 56(1)(x) income inclusion apply even where RCA contribution is partially or fully non-deductible Are contributions by a corporation to an RCA deductible in computing its income where the contributions relate to services rendered by a shareholder-employee while self-employed and before the corporation’s incorporation, and can the RCA be funded when such contributions are not deductible to the employer? ...

24 January 2005 External T.I. 2004-0099471E5 F- Convention de retraite pour un actionnaire-employé-- summary under Salary Deferral Arrangement Summary Under Tax Topics- Income Tax Act- Section 248- Subsection 248(1)- Salary Deferral Arrangement a significant reduction in bonus or salary matched by an RCA contribution likely suggests it instead is an SDA After noting that contributions by a corporation to an RCA would not be deductible in computing its income where the contributions related to services rendered by a shareholder-employee while self-employed and before the corporation’s incorporation, or to the extent that s. 67 applied, CRA turned to the question whether there would be an SDA if the corporation regularly reduced bonuses to a shareholder-employee by the amount of related contributions to the employee RCA for its employees, and stated: Where a plan or arrangement can qualify as both an RCA and an SDA, it will be treated as an SDA …. … [I]t can be assumed that, except in special circumstances, where a portion of an employee's salary or wages is deferred under an agreement, one of the main purposes is to defer the payment of taxes. … [W]here a significant portion of the salary or bonus to which a shareholder-employee is entitled for services rendered is reduced so as to be contributed to an RCA instead, the existence of the RCA could be questioned since the contribution made by the employer may not relate to benefits that are receivable at retirement. ...

2 February 2005 External T.I. 2004-0104671E5 F- Convention de retraite- Fonds mis de côté-- summary under Retirement Compensation Arrangement Summary Under Tax Topics- Income Tax Act- Section 248- Subsection 248(1)- Retirement Compensation Arrangement no requirement that payment to the other be in trust In a general response to a query as to whether a special reserve fund that an employer creates by depositing money with a broker to provide for the payment of a portion of a pension payable for the retirement of a management employee will constitute a salary deferral arrangement or a retirement compensation arrangement, CRA stated: In a situation where an employer pays money to a bank, trust company or broker to meet its obligations upon the retirement of an employee, the money could be considered a contribution in respect of benefits that may be received by a person upon that person's retirement. … Please note that the definition of a retirement compensation arrangement does not require that the contributions become the property of the person to whom they are made or that a trust be created. ...

22 March 2005 External T.I. 2005-0112081E5 F- Convention de retraite- lettre de crédit-- summary under Refundable Tax Summary Under Tax Topics- Income Tax Act- Section 207.5- Subsection 207.5(1)- Refundable Tax use of letter of credit to secure RCA benefits The employer for an RCA trust contributed to it an amount equaling the fee payable by the trust to a financial institution for issuing a letter of credit, plus the (equal) amount of the refundable tax. ...

22 March 2005 External T.I. 2005-0112081E5 F- Convention de retraite- lettre de crédit-- summary under Subsection 207.5(2) Summary Under Tax Topics- Income Tax Act- Section 207.5- Subsection 207.5(2) election not available to custodian holding an LC The employer for an RCA trust contributed to it an amount equaling the fee payable by the trust to a financial institution for issuing a letter of credit, plus the (equal) amount of the refundable tax. ...

29 May 2007 Internal T.I. 2006-0217401I7 F- 110(1)d): Moment de la conclusion de la convention-- summary under Subsection 7(5) Summary Under Tax Topics- Income Tax Act- Section 7- Subsection 7(5) not giving exercise notice to employees who are not shareholders (so that they cannot exercise their options) may engage s. 7(5) Employees of Opco (Participants”) were granted stock options by Opco pursuant to “Grant Agreements” which specified the number of Options granted and their exercise price (which equaled the FMV of the subject shares at the time of such grant), but provided that such Options were not exercisable (and could not be surrendered to Opco for their cash surrender value) until the compensation committee of Opco had issued an “Exercise Notice” to the Participant. ...

22 March 2005 External T.I. 2005-0112081E5 F- Convention de retraite- lettre de crédit-- summary under Subsection 207.7(2) Summary Under Tax Topics- Income Tax Act- Section 207.7- Subsection 207.7(2) where LC used to secure RCA benefits and refundable tax generated on funding of LC fees, refundable tax not recoverable based on paying the benefits The employer for an RCA trust contributed to it an amount equaling the fee payable by the trust to a financial institution for issuing a letter of credit, plus the (equal) amount of the refundable tax. ...

11 October 2013 Roundtable, 2013-0492821C6 F- Question 3- APFF Round Table-- summary under Article 4 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 4 s. 94 trusts were resident in Canada for Treaty purposes even before Income Tax Conventions Interpretation Act amendment, which precludes application of tie-breaker How would the Canada-U.S. Tax Convention (the "Convention") tie-breaker rules apply in a double residency case under the Convention and how could any double taxation be addressed? ... In addition, the legislative amendments … [under] the Income Tax Conventions Interpretation Act … a trust deemed to be resident in Canada pursuant to subsection 94(3) is deemed to be resident in Canada … for the purposes of the Convention. … [T]he effect of this new provision is to make it impossible to break the tie because it deems such an equality to be non-existent. ...