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26 May 2009 External T.I. 2009-0316841E5 F- Convention de retraite, crédit d'impôt étranger-- summary under Subsection 126(1) Summary Under Tax Topics- Income Tax Act- Section 126- Subsection 126(1) no foreign tax credit can be claimed for non-business income tax paid on income of RCA trust Before indicating that foreign tax paid on non-business income may be deductible under s. 20(11) or (12) in computing income for purposes of the Part XI.3 tax on retirement compensation arrangements, CRA stated: Pursuant to paragraph 149(1)(q.1), no Part I tax is payable on the taxable income of an RCA trust. ...

20 August 2008 External T.I. 2008-0288561E5 F- Convention de partage d'une société de personnes-- summary under Subsection 96(1.1) Summary Under Tax Topics- Income Tax Act- Section 96- Subsection 96(1.1) no income could be allocated under s. 96(1.1) where aggregate income was nil The partnership agreement for a services partnership provides that a partner who has withdrawn will be paid over five years an amount respecting work-in-progress and paid at a formula-based rate over five years, with the parties agreeing that such amounts be paid as income allocations under s. 96(1.1). ...

15 September 2003 External T.I. 2003-0033405 F- CONVENTION DE RETRAITE INTERETS COURUS-- summary under Paragraph (b) Summary Under Tax Topics- Income Tax Act- Section 207.5- Subsection 207.5(1)- Refundable Tax- Paragraph (b) computation of refundable tax includes income under application of s. 12(9) to stripped coupons Where an RCA trust holds strip bonds and debentures with interest payable at maturity, should such interest income be recognized only at maturity in computing the "refundable tax" of the RCA. ...

16 October 2003 External T.I. 2003-0038315 F- CONVENTION DE RETRAITE-- summary under Paragraph 20(1)(c) Summary Under Tax Topics- Income Tax Act- Section 20- Subsection 20(1)- Paragraph 20(1)(c) reasonableness of interest rate determined re market interest rates An RCA trust created for the benefit of a managing shareholder and to which the employer contributed $100,000 lends the amount of the contribution, net of refundable taxes (i.e., $50,000), to the corporation. ...

14 January 2004 External T.I. 2003-0046131E5 F- Convention de retraite- dépositaire-- summary under Retirement Compensation Arrangement Summary Under Tax Topics- Income Tax Act- Section 248- Subsection 248(1)- Retirement Compensation Arrangement life insurance company can be a custodian Can a life insurance company carrying on business in Canada be a custodian as defined in the definition of "retirement compensation arrangement" (“RCA”)? ...

24 January 2005 External T.I. 2004-0099471E5 F- Convention de retraite pour un actionnaire-employé-- summary under Paragraph 20(1)(r) Summary Under Tax Topics- Income Tax Act- Section 20- Subsection 20(1)- Paragraph 20(1)(r) no deduction regarding pre-incorporation services, and longstanding CRA position re shareholder-manager compensation 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? ...

24 January 2005 External T.I. 2004-0099471E5 F- Convention de retraite pour un actionnaire-employé-- summary under Section 67 Summary Under Tax Topics- Income Tax Act- Section 67 81 Roundtable position on shareholder-manager compensation also applies to RCA contributions 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? ...

2 February 2005 External T.I. 2004-0104671E5 F- Convention de retraite- Fonds mis de côté-- summary under Salary Deferral Arrangement Summary Under Tax Topics- Income Tax Act- Section 248- Subsection 248(1)- Salary Deferral Arrangement amounts agreed to be paid post-retirement do not create an SDA if they are not reasonably regarded as deferred salary 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: [W]here an employer agrees to pay amounts to an employee on or after retirement, and the amounts cannot reasonably be regarded as salary or wages that have been agreed to be deferred, the arrangement will generally not be regarded as a salary deferral arrangement. ...

25 October 2000 External T.I. 2000-0017065 F- CONVENTION DE RETRAITE ET ASSURANCE-- summary under Subsection 207.6(2) Summary Under Tax Topics- Income Tax Act- Section 207.6- Subsection 207.6(2) no Pt. ...

20 August 2008 External T.I. 2008-0288561E5 F- Convention de partage d'une société de personnes-- summary under Subparagraph 53(2)(c)(v) Summary Under Tax Topics- Income Tax Act- Section 53- Subsection 53(2)- Paragraph 53(2)(c)- Subparagraph 53(2)(c)(v) payment to a retired partner in excess of partnership income is treated as a constructive withdrawal of capital by the other partners, reducing their ACB The partnership agreement for a services partnership provides that a partner who has withdrawn will be paid over five years an amount respecting work-in-progress and paid at a formula-based rate over five years, with the parties agreeing that such amounts are paid as income allocations under s. 96(1.1). ...