Paragraph 60(a)
Administrative Policy
14 July 1992 External T.I. 5-921248
Example given of calculation of deduction under s. 60(a) for the capital portion of a life annuity.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 118.1 - Subsection 118.1(1) - Total Charitable Gifts | 43 |
Paragraph 60(b) - Support
Cases
Broad v. Canada, 2010 DTC 5097 [at 6924], 2010 FCA 146
The taxpayer entered into a written separation agreement with his common law spouse in which he was obligated to make support payments. Several...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 56.1 - Subsection 56.1(4) | 165 |
Milliron v. Canada, 2003 DTC 5490, 2003 FCA 283 (FCA)
In February 1997 the taxpayer and his wife entered into a separation agreement in which it was agreed that in December 1997 the maintenance and...
R. v. Francis J. Arsenault, 96 DTC 6131, [1999] 4 CTC 174 (FCA)
The taxpayer met the requirements of s. 60(b) where, notwithstanding the requirements of a separation agreement stipulating that he was to pay...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 56 - Subsection 56(12) | 59 |
Ambler v. The Queen, 95 DTC 5401, [1995] 2 CTC 1 (FCA)
Minutes of settlement reached between the taxpayer and his wife gave the taxpayer the option of paying his wife the lump sum of $208,000, or of...
Urichuk v. The Queen, 91 DTC 5375, [1991] 2 CTC 32 (FCTD), aff'd 93 DTC 5120 (FCA)
Approximately five years after entering into a written separation agreement to pay $1,500 per month for the maintenance of his wife, the taxpayer...
Cohen v. The Queen, 91 DTC 5239, [1991] 1 CTC 288 (FCTD)
In his separation agreement with his wife, the taxpayer, in addition to agreeing to pay her maintenance of $1,500 per month from 1 November 1980...
Burgess v. The Queen, 91 DTC 5076, [1991] 1 CTC 163 (FCTD)
An exchange of correspondence between the solicitors of the taxpayer and his wife, although it might have constituted a written agreement, did not...
Caston v. The Queen, 90 DTC 6297, [1990] 1 CTC 439 (FCTD)
Rule 396 of Alberta Rules of Court provided that before any motion was made for interim alimony the plaintiff was to serve notice on the defendant...
McKimmon v. The Queen, 90 DTC 6088 (FCA)
A decree nisi ordered the payment by the taxpayer to his spouse of (a) the sum of $130,000 (to be effected by the transfer to her of some land),...
Larivière v. The Queen, 89 DTC 5176, [1989] 1 CTC 297 (FCA)
The taxpayer's decree for divorce from his spouse provided that "instead of awarding her alimony payable in monthly instalments it is better to...
Hodson v. The Queen, 88 DTC 6001, [1988] 1 CTC 2 (FCA)
Support payments made by the taxpayer to his separated wife were not made pursuant to a written agreement or court order, and accordingly were not...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Statutory Interpretation - Ordinary Meaning | 36 |
Klement v. The Queen, 87 DTC 5284, [1987] 2 CTC 27 (FCTD)
$4,200 which the taxpayer paid in the year pursuant to a $13,000 lump sum maintenance award was non-deductible. The taxpayer's contention that...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Other Legislation/Constitution - Federal - Canadian Bill of Rights - Paragraph 1(b) | 18 |
Gagnon v. The Queen, 86 DTC 6179, [1986] 1 CTC 410, [1986] 1 S.C.R. 264
"[F]or an amount to be an allowance within the meaning of s. 60(b) of the Income Tax Act, the recipient must be able to dispose of it completely...
Hanlin v. The Queen, 85 DTC 5052, [1985] 1 CTC 54 (FCTD)
The taxpayer agreed in writing with his wife to pay her "for her periodic maintenance" the sum of $1,000 at the beginning of each month over a...
The Queen v. Taylor, 84 DTC 6234, [1984] CTC 244 (FCTD)
S.252(3) was characterized as "remedial legislation permitting a party to a void or voidable marriage to deduct for income tax purposes interim...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Statutory Interpretation - Expressio Unius est Exclusio Alterius | 69 |
The Queen v. Dorion, 81 DTC 5111, [1981] CTC 136 (FCTD)
A lump sum of $20,000, payable by the taxpayer to his ex-wife in 5 annual instalments had been found, in a previous civil-law decision of the...
Juteau v. The Queen, 80 DTC 6218 (FCTD)
Maintenance payments made by the taxpayer to his separated wife at a time when no written separation agreement had been entered into, were...
Feinstein v. The Queen, 79 DTC 5236, [1979] CTC 329 (FCTD)
A declaratory judgment dated January 28, 1971 required the taxpayer to pay a weekly maintenance allowance commencing September 1, 1970. The...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Tax Avoidance | 42 |
Trottier v. Minister of National Revenue, 68 DTC 5216, [1968] CTC 324, [1968] S.C.R. 728
Under an arrangement (reflected in four documents) between the taxpayer and his wife, the taxpayer agreed to pay his wife $45,000 of which $12,000...
See Also
Gibson v. The Queen, 95 DTC 749, [1996] 1 CTC 2105 (TCC) (Informal Procedure)
The taxpayer transferred his equity in a house to his former spouse in satisfaction of arrears of alimony or maintenance owing to her of $19,946....
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Payment & Receipt | payment in kind if agreement as to the amount | 81 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Amount | 81 |
Lay v. The Queen, 95 DTC 272, [1993] 2 CTC 2916 (TCC)
A simple written separation agreement, which the taxpayer had drafted without the benefit of legal counsel, did not specifically require him and...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Evidence | 56 |
Nelson v. The Queen, 94 DTC 1003, [1994] 1 CTC 2031 (TCC)
There was a written separation agreement when the taxpayer signed a letter from his wife solicitor setting out the terms of their existing...
Blais v. MNR, 92 DTC 1497 (TCC)
A taxpayer was ordered in 1984 to retain arrears of alimentary allowance that had accumulated from March 1983 onward to be applied against an...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Payment & Receipt | payment references funds transfer | 100 |
| Tax Topics - Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(b) | 100 |
Jaskot v. MNR, 92 DTC 1102, [1992] 1 CTC 2145 (TCC)
An agreement which was described as "partly written and partly oral", i.e., the solicitor for the taxpayer's former wife had written some letters...
D'Anjou v. MNR, 92 DTC 1022, [1991] 2 CTC 2563 (TCC)
The taxpayer inter alia agreed in writing with his estranged wife that he would pay her $25,000 in five instalments, the first to be payable when...
Administrative Policy
7 September 2022 Internal T.I. 2022-0931081I7 - Retroactive support payments
A 2018 court order required retroactive child and spousal support payments to be made by an individual to a former spouse on a monthly basis for...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 60.1 - Subsection 60.1(3) | application of s. 60.1(3) to payments already made in the current and preceding year | 388 |
| Tax Topics - General Concepts - Effective Date | court order rendered a lump sum payment as being in satisfaction of a retroactively-created periodic support obligation | 260 |
23 August 2007 Internal T.I. 2007-0245591I7 F - Déductibilité d'un montant de pension alimentaire
Certain of the payments made by Monsieur to Madame pursuant to a court order were not established to have been made on a periodic basis and,...
6 May 2008 Internal T.I. 2008-0267451I7 F - Pension alimentaire versée à des tiers
Under the terms of a separation agreement, the taxpayer was required to make weekly support payments for the benefit of his ex-wife for a motor...
25 August 2008 External T.I. 2005-0139191E5 F - Paiement forfaitaire - pension alimentaire
CRA indicated that Tsiaprailis does not change CRA's position on lump sum payments made, in respect of support payments, in order to obtain the...
12 August 2008 External T.I. 2008-0278401E5 F - Pension alimentaire
Monthly payments made by the taxpayer to his fiancée living abroad to help her and her children support themselves did not qualify as deductible...
25 February 2008 Internal T.I. 2007-0230421I7 F - Pension alimentaire et entente rétroactive
The taxpayer is a party to a 1994 Ontario divorce court judgment which stated that the two children would be primarily in the custody of the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 118 - Subsection 118(1) - Paragraph 118(1)(b) | legal requirement (given ineffectiveness of retroactive agreement) to pay support only re one of two children precluded s. 118(1)(b) deduction for 2nd child | 309 |
22 November 2007 External T.I. 2007-0226001E5 F - Jugement de divorce - Montant forfaitaire
CRA indicated that an amount payable to a former wife following a divorce judgment likely “could not be maintenance” and likely would not be...
6 April 2006 Internal T.I. 2005-0157361I7 F - Pension alimentaire
Support payments made pursuant to a German court order by Monsieur, after his return to Canada, to his separated wife, who remained in Germany...
26 January 2005 Internal T.I. 2004-0101351I7 F - Déduction pour frais juridiques - Alinéa 60o)
The shareholder of an insolvent corporation incurred legal fees in defending against an ARQ sales tax assessment made on the basis that he was...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose | legal costs of disputing GST or sales tax assessments of a business are deductible | 88 |
4 October 2002 Internal T.I. 2001-010564A F - PENSION ALIMENTAIRE-ARRERAGES
In finding that a lump-sum payment to cover support-payment arrears could be considered as an amount payable on a periodic basis, even though it...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Payment & Receipt | set-off does not constitute payment unless the parties so agree | 243 |
15 November 1994 Internal T.I. 9424447 - DEDUCTIBILITY OF MAINTENANCE PAYMENTS
Alimony or maintenance payments that are now paid to a public trustee because the former spouse has been placed in a mental institution will...
10 February 1994 Internal T.I. 9321867 F - Alimony and Maintenance
An amount paid does not necessarily have to be paid periodically to be deductible as long as the allowance provided for in the order or agreement...
12 January 1993 T.I. (Tax Window, No. 28, p. 6, ¶2369)
Where a spouse transfers an interest in the principal residence to the other in satisfaction of alimony payments that are in arrears, no deduction...
2 June 1992 T.I. 921084 (December 1992 Access Letter, p. 15, ¶C56-204)
An agreement entered into before or after marriage but before separation which sets out mutual rights and obligations that would arise following...
6 April 1992 T.I. (Tax Window, No. 18, p. 21, ¶1848)
Where one spouse pays the insurance premiums on insurance coverage acquired in order to ensure that alimony payments are made in the event of his...
3 March 1992 Memorandum (Tax Window, No. 17, p. 19, ¶1777)
Where a separation agreement or court order provides for the division of an individual's pension with his or her spouse, the resulting transfer of...
4 November 1991 T.I. (Tax Window, No. 13, p. 6, ¶1586)
Where the taxpayer had purchased an annuity contract and irrevocably directed that the annuity payments be made to his former wife, who has no...
5 June 1990 T.I. (November 1990 Access Letter, ¶1521)
Payments by the estate of a deceased taxpayer of alimony payments that were in arrears would not be deductible under ss.60(b) or (c).
12 June 1990 Memorandum (November 1990 Access Letter, ¶1520)
A demand made under the Alberta Rules of Court signed by one spouse and consented to by notice in writing by the other spouse would not qualify as...
Articles
Durnford, Toope, "Spousal Support in Family Law and Alimony in the Law of Taxation", Canadian Tax Journal, 1994, Vol. 42, No. 1, p. 1.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 15 - Subsection 15(1) - Paragraph 15(1)(b) | 0 | |
| Tax Topics - Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(b) | 0 |
Paragraph 60(c) - Pension income reallocation
Cases
The Queen v. Kendall, 83 DTC 5134, [1983] CTC 119 (FCTD)
Payments made by the taxpayer to third parties for the benefit of his wife were (following Gagnon, 82 DTC 6318 (FCA)) not deductible.
Ahern v. The Queen, 82 DTC 6325, [1982] CTC 362 (FCTD)
Payments are not deductible if made for the maintenance of the child of a person to whom the taxpayer was never legally married.
Howard v. The Queen, 74 DTC 6607, [1974] CTC 857 (FCTD)
The B.C. Supreme Court on February 16, 1970 ordered the taxpayer to pay $200 per month to his wife commencing February 1, 1970. On October 22,...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Effective Date | 84 |
Administrative Policy
27 January 1992 Memorandum (Tax Window, No. 16, p. 4, ¶1719)
Where a taxpayer, who is required to pay maintenance to his spouse pursuant to a court order, pays a portion of the maintenance instead directly...
Paragraph 60(c.1)
Cases
Bergman v. The Queen, 94 DTC 6056 (FCA)
The Court rejected an allegation of a taxpayer, who was denied the deduction of child support that he paid after 1986 to his common-law spouse,...
See Also
Weronski v. MNR, 91 DTC 1105, [1991] 2 CTC 2431 (TCC)
The fact that support payments made to a former common-law spouse must be authorized by a court order (and not merely by a written agreement as in...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Other Legislation/Constitution - Charter (Constitution Act, 1982) - Subsection 15(1) | 46 |
Administrative Policy
21 July 1992 T.I. 921890 (March 1993 Access Letter, p. 70, ¶C56-217)
A paternity agreement that has been incorporated into a court order of the Provincial Court would constitute an "order" as envisioned by s....
Paragraph 60(f) - Restrictive covenant — bad debt
See Also
McBurney v. The Queen, 84 DTC 6494, [1984] CTC 466 (FCTD), rev'd 85 DTC 5433, [1985] 2CTC 214 (FCA)
A tuition fee was defined as "the monetary consideration (money or, money's worth of goods or services) payable to a pedagogue or school authority...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 149.1 - Subsection 149.1(1) - Charitable Organization | 18 | |
| Tax Topics - Statutory Interpretation - Ordinary Meaning | 31 |
Administrative Policy
S2-F3-C1 - Payments from Employer to Employee
1.9 Where an amount in respect of a covenant (described in [s. 6(3)] is receivable by an employee at the end of the year, subsection 6(3.1) deems...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 5 - Subsection 5(1) | 120 | |
| Tax Topics - Income Tax Act - Section 56 - Subsection 56(2) | directed employment payment | 58 |
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(3.1) | 184 | |
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(3) | 75 |
Paragraph 60(i) - Premium or payment under RRSP or RRIF
Administrative Policy
18 November 2014 External T.I. 2012-0457981E5 - Restorative payment to registered plan
Employer accidentally missed contributing, to a group RRSP or defined contribution pension plan, the Employer's portion on behalf of an employee...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(q) | employer restorative payment to RRSP or RPP to compensate for tort | 159 |
| Tax Topics - Income Tax Act - Section 204.1 - Subsection 204.1(2.1) | employer restorative payment to RRSP or RPP to compensate for tort | 83 |
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) | employer restorative payment to RRSP or RPP to compensate for tort | 115 |
Paragraph 60(j) - Transfer of superannuation benefits
Administrative Policy
3 November 2023 APFF Financial Strategies and Instruments Roundtable Q. 8, 2023-0976901C6 F - RPP survivor benefit flowing through a GRE
Sylvie, who was the surviving spouse and sole heir of Paul. elected not to receive a joint and survivor pension under the registered pension plan...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(27) | full flow-through of a pension benefit received by the estate to the surviving spouse for s. 60(j) purposes by the estate issuing her a note | 287 |
| Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(24) | income can be distributed to estate beneficiary by issuing a demand note to her | 58 |
24 June 2020 External T.I. 2018-0747781E5 - Australian Self-managed Super Fund
CRA found that an Australian “Self-managed Super Fund” to which the taxpayer, her husband and her husband’s employer had made contributions...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Superannuation or Pension Benefit | Australian “Self-managed Super Fund” was a pension plan | 333 |
29 October 2018 External T.I. 2018-0750411E5 - Transfer from an IRA to a RRSP
A Canadian citizen who was a U.S. long term resident under the U.S. expatriation rules was deemed for Code purposes to receive a taxable...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 60.01 | a departing U.S. resident who has a deemed inclusion for his IRA cannot then obtain a s. 60(j) deduction for contributing actual IRA withdrawals to his RRSP | 310 |
| Tax Topics - Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(a) - Subparagraph 56(1)(a)(i) - Clause 56(1)(a)(i)(C.1) | deemed withdrawal from IRA rather than subsequent actual withdrawal included in income per s. 56(12) | 225 |
16 May 2016 External T.I. 2015-0571591E5 - Employees Provident Fund of Malaysia
In responding to a question as to whether an individual who received a lump sum payment from the Employees Provident Fund of Malaysia (“EPF”),...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Superannuation or Pension Benefit | pension plan characteristics | 168 |
| Tax Topics - Income Tax Act - 101-110 - Section 110 - Subsection 110(1) - Paragraph 110(1)(f) - Subparagraph 110(1)(f)(i) | Treaty-exempt receipts must be included in income and deducted from taxable income under s. 110(1)(f)(i) | 91 |
2015 Ruling 2015-0572541R3 - Foreign Tax Credit on Transfer of 401(k) to RRSP
The Individual will be entitled to a deduction under paragraph 60(j)… for the contribution to his RRSP… .
See summary under s. 126(1).
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 126 - Subsection 126(1) | s. 60(j) deduction does not reduce foreign source income for FTC purposes | 195 |
| Tax Topics - Income Tax Act - Section 126 - Subsection 126(7) - Non-Business-Income Tax | additional 10% tax on withdrawal from 401(k) plan, as income tax | 123 |
24 September 2014 External T.I. 2014-0543091E5 - UK Personal Pension - RRSP
The taxpayer wishes to transfer funds from a personal pension scheme (PPS) in the United Kingdom, which is a self-funded retirement plan, to a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Superannuation or Pension Benefit | U.K personal pension scheme not a pension plan | 117 |
15 January 2013 External T.I. 2012-0439641E5 - UK pension transfer to Canada
After accruing benefits in a UK define plan while residing and being employed in the UK, the correspondent received a lump-sum payment from the...
19 July 2005 External T.I. 2005-0140871E5 F - Régime de pension étranger
Regarding a transfer funds from a Swiss pension plan, to which the taxpayer and the taxpayer’s employer had contributed, to an RRSP, CRA...
Articles
Faizal Valli, "Implications of Canadians Transferring a U.S. Retirement Plan to Canada", Taxation of Executive Compensation and Retirement, Vol. XV, No. 2, 2011, p. 930: Includes discussion of plan to transfer a 401(k) plan to an IRA, then to an RRSP.
Paragraph 60(j.1) - Transfer of retiring allowances
Administrative Policy
S2-F1-C2 - Retiring Allowances
Example of 60(j.1) retiring allowance transfer to RRSP
2.31 ...
Jacques began working at ABC Company in October 1984 and retired in June 2016. In...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Retiring Allowance | 760 | |
| Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(28) | 100 | |
| Tax Topics - Income Tax Act - Section 3 | 224 |
12 November 2014 Internal T.I. 2014-0535341I7 - Retiring Allowance transfer to RCA
Where members of a registered pension plan direct their employer to transfer their retiring allowance to the RPP to purchase past service benefits...
15 October 2010 External T.I. 2010-0364291E5 - 60(j.1)(ii) Predecessor Employer
Generally, there is no loss of employment on a school board amalgamation. Therefore, years of service with a predecessor board may be included in...
13 September 2006 External T.I. 2006-0184711E5 F - Allocation de retraite
A former employee worked for an affiliated company for 10 years from 1973 to 1986 and worked for the current company for 12 years until her...
16 January 2004 External T.I. 2003-0046491E5 F - Allocation de retraite
CCRA indicated that severance pay was not a retiring allowance, as it was received pursuant to the employment, and could not be rolled into an...
15 September 2003 External T.I. 2003-0034195 F - ALLOCATION DE RETRAITE
Regarding the calculation of the transferable amount under former version of s. 60(j.1), CCRA indicated that this referenced $2,000 for each year...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Agency | common law Crown agency test applied for determining whether current and previous employers were related employers | 304 |
Income Tax Technical News, No. 7, 21 February 1996 (cancelled)
Employer contributions under a pension plan or deferred profit sharing plan are not considered to have vested in the retiree at the time of the...
24 July 1995 External T.I. 9515905 - PARTNERSHIPS UNDER 60(J.1)
"In the circumstances where either subparagraph 60(j.1)(iv) or (v) of the Act apply, namely where the partnership has acquired or continued a...
1 June 1995 External T.I. 9511895 - TRANSFER OF PENSION AND RETIRING ALLOWANCE
S.60(j.1)(v) would apply to deem a new employer to be a related employer where the new employer has a money purchase registered pension plan, the...
31 May 1995 Internal T.I. 9508876 - RELATED EMPLOYERS FOR RETIRING ALLOWANCE
"If any part of the service with a previous employer is recognized under the current employer's pension plan, all the years of service with the...
7 March 1995 External T.I. 9500685 - RETIRING ALLOWANCE - EMPLOYED
Where termination pay is paid to an employee in lieu of the wages that would have been payable to an individual for the notice period set out in...
2 November 1994 External T.I. 9423845 - PARAGRAPH 60(J.1)
The years in which an employee was employed by a foreign subsidiary can be taken into account.
14 September 1994 Internal T.I. 9423527 - RETIRING ALLOWANCE FOR MLA'S
"The 'employer' of the New Brunswick Legislative Assembly is the same employer of the New Brunswick Civil Servants and, therefore, all years of...
12 September 1994 External T.I. 9417285 - RELATED EMPLOYERS FOR RETIRING ALLOWANCE TRANSFER
Where an individual works for Employer 1 when it is related to Employer 2, Employer 2 severs its connection with Employer 1 so that it no longer...
4 August 1994 External T.I. 9416315 - RETIRING ALLOWANCE,VESTED CONTRIBUTIONS
Routine discussion includes an example.
28 July 1994 External T.I. 9414315 - RETIRING ALLOWANCE TRANSFER-DISCONTINOUS SERVICE
The years of service used in the calculation of a portion of a retiring allowance that may be transferred to an RRSP under s. 60(j.1) need not be...
23 March 1994 External T.I. 9405865 - RETIRING ALLOWANCE - PERSON RELATED TO EMPLOYER
Another school board will be considered to be a person related to the school board currently employing the taxpayer where both boards participate...
17 June 1993 T.I. (Tax Window, No. 32, p. 19, ¶2620)
The number of years of service need not be continuous in order to be included in the calculation of the amount deductible.
15 January 1993 T.I. (Tax Window, No. 28, p. 18, ¶2378)
A taxpayer may elect under s. 60(j.1) to transfer a retiring allowance to his registered pension plan in order to buy back past service for years...
5 March 1992 T.I. (Tax Window, No. 17, p. 19, ¶1784)
Where an employee pays amounts into a pension plan to buy back past service years, the employer's contributions have vested in respect of each...
21 April 1992 T.I. (Tax Window, No. 18, p. 18, ¶1866)
Where an employee buys back years of service under a pension plan and pays the employer's shares of contributions in addition to his share, the...
15 April 1992 T.I. (Tax Window, No. 18, p. 19, ¶1862)
Re effect of winding-up of pension plan on test in s. 60(j.1)(v).
7 February 1992 Memorandum (Tax Window, No. 16, p. 14, ¶1737)
Where an individual worked for Oldco for a number of years, Oldco then went out of business and was wound up and the individual then formed Newco...
5 February 1992 T.I. (Tax Window, No. 16, p. 13, ¶1733)
Where, under a pension plan, an individual who suffered a loss of office could elect, with respect to one or more years of service prior to 1987,...
17 October 1990 T.I. (Tax Window, Prelim. No. 1, p. 20, ¶1020)
Because a "pension plan" includes any pension plan whether registered or not, an employee of a Canadian corporation who is covered by a...
26 January 1990 T.I. (June 1990 Access Letter, ¶1261)
Discussion of years credited for employment with a previous employer of the retiree.
IT-337R2 "Retiring Allowances" under "Tax Deferral"
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Retiring Allowance | 0 |
IT-307R2 "Registered Retirement Savings Plan for Taxpayer's Spouse"
The provisions of s. 60(j.1) do not entitle a taxpayer to deduct the amounts of the type described therein that had been paid into an RRSP of his...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 146 - Subsection 146(5.1) | 0 |
ATR-8 "Transfer of Retiring Allowance to an RRSP"
Articles
Collins, "The Terminated Employee: Minimizing the Tax Bite", 1993 Conference Report, C. 31.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Retiring Allowance | 0 |
Subparagraph 60(j.1)(ii)
Clause 60(j.1)(ii)(B)
Administrative Policy
29 February 2012 External T.I. 2011-0431131E5 F - Sommes versées en règlement d'un grief
After a unionized employee filed a grievance for wrongful dismissal, the employer will pay the employee a lump sum so that the latter can make a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 5 - Subsection 5(1) | damages on retroactive reinstatement are taxable | 75 |
| Tax Topics - Income Tax Act - Section 60 - Paragraph 60(j.1) - Subparagraph 60(j.1)(v) | previous employment years of service included if bought back | 145 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Retiring Allowance | damages for event occurring during employment generally will be non-taxable | 204 |
Clause 60(j.1)(ii)(C)
Administrative Policy
21 June 2004 External T.I. 2004-0074851E5 F - Allocation de retraite
The Municipality decided to cease providing municipal services for its territory and signed an agreement with the another City (the "City") to...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Retiring Allowance | severance was a retiring allowance even though the employee was hired by another municipality that had agreed to take over the municipal functions of her first employer | 366 |
| Tax Topics - Income Tax Act - Section 251 - Subsection 251(2) - Paragraph 251(2)(c) - Subparagraph 251(2)(c)(i) | two municipalities were not Crown agents or controlled by provincial government and, therefore, were not related | 261 |
Subparagraph 60(j.1)(iii)
Clause 60(j.1)(iii)(A)
Administrative Policy
7 December 2001 External T.I. 2001-0107765 F - RPA-ALLOCATION DE RETRAITE
Regarding where part of the contribution to a registered pension plan may be deductible under paragraph 8(1)(m), CCRA stated:
[T]he amount...
Subparagraph 60(j.1)(v)
Administrative Policy
29 February 2012 External T.I. 2011-0431131E5 F - Sommes versées en règlement d'un grief
After a unionized employee filed a grievance for wrongful dismissal, the employer will pay the employee a lump sum so that the latter can make a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 5 - Subsection 5(1) | damages on retroactive reinstatement are taxable | 75 |
| Tax Topics - Income Tax Act - Section 60 - Paragraph 60(j.1) - Subparagraph 60(j.1)(ii) - Clause 60(j.1)(ii)(B) | employer contributions vest for each year bought back by an employee | 121 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Retiring Allowance | damages for event occurring during employment generally will be non-taxable | 204 |
3 June 2004 External T.I. 2004-0068081E5 F - Allocation de retraite - Employeurs liés
Regarding a severance amount paid to an employee who had worked for a succession of public institutions in the Quebec health and social services...
5 June 2001 External T.I. 2001-0067675 F - TRANSFERT D'ALLOCATIONS DE RETRAITE
In the course of a general discussion, CCRA stated:
Subparagraph 60(j.1)(v) indicates that a "person related to the employer" includes a former...
Paragraph 60(l) - Transfer of refund of premiums under RRSP
Administrative Policy
6 October 2017 APFF Financial Strategies and Instruments Roundtable Q. 5, 2017-0707801C6 F - RRIF transfers – partition of family patrimony
A couple separated without proceeding to an official division of their assets. When Monsieur subsequently died, his will excluded Madame. She made...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 146.3 - Subsection 146.3(14) | amount paid to surviving spouse's RRIF did not qualify under s. 146.3(14) | 167 |
| Tax Topics - Income Tax Act - Section 146.3 - Subsection 146.3(1) - Designated Benefit | payment from a deceased’s RRIF to the RRIF of the surviving spouse who was excluded under the will qualified as designated benefit | 353 |
11 July 2016 External T.I. 2015-0592681E5 F - RRIF Death of an annuitant
Where the death of an annuitant under an RRIF was followed very shortly by the death of the surviving spouse, CRA accepted that the (briefly)...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 146.3 - Subsection 146.3(1) - Annuitant | surviving spouse who has been predesignated can qualify as an RRIF annuitant even if he or she does not receive any annuity payments | 251 |
| Tax Topics - Income Tax Act - Section 146.3 - Subsection 146.3(6.2) | deduction for transfer to eligible recipient by surviving spouse | 287 |
| Tax Topics - Income Tax Act - Section 146 - Subsection 146(1) - Refund of Premiums | consequence of death if named as beneficiary in RRSP contract | 169 |
23 June 2014 External T.I. 2014-0528551E5 - Transfer of refund of premium
Can a deceased RRSP annuitant's financially dependent child or grandchild who was not dependent on the deceased by reason of physical or mental...
11 January 2012 STEP Roundtable, 2011-0402291C6 - Subsection 248(8)-Intestacy-Transfer of Property
Where a taxpayer dies intestate, then provided the property of the deceased is distributed to the beneficiaries in accordance with the shares...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(8) - Paragraph 248(8)(a) | 108 | |
| Tax Topics - Income Tax Act - Section 70 - Subsection 70(6) | non pro rata allocations to beneficiaries | 124 |
19 June 1995 External T.I. 9515405 - 2 SPOUSES AS BENEFICIARIES OF RRSP
"Where an individual is the annuitant of several registered retirement savings plans ("RRSPs") and the individual is both married and living...
88 C.R. - Q.76
RC does not have an administrative policy that would permit a continuous sheltering of the income on plan assets during the period required to...
Subparagraph 60(l)(ii)
Administrative Policy
23 January 2020 External T.I. 2019-0830781E5 - Charitable gift annuity and 60(l) rollover
The correspondent (a registered charity) asked CRA to consider its position in 2018-0758611E5 that a charitable gift annuity issued by it was...
Clause 60(l)(ii)(B)
Administrative Policy
10 March 2004 External T.I. 2002-0160751E5 F - REÉR au décès: rente pour un bénéficiaire mineur
The annuitant of a registered retirement savings plan ("RRSP") died, leaving his RRSP in trust for his minor child. The executor of the estate...
10 March 2004 External T.I. 2002-0164661E5 F - REÉR au décès: rente pour un bénéficiaire mineur
The annuitant of a registered retirement savings plan ("RRSP") died, leaving his 10-year-old son who was financially dependent for his support and...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 146 - Subsection 146(8.1) | election can be executed by executor qua executor and qua legal representative of the minor beneficiary, if so authorized | 153 |
Subparagraph 60(l)(v)
Clause Subparagraph 60(l)(v)(B.01)
Administrative Policy
7 October 2011 Roundtable, 2011-0420781C6 F - Transfert de RPA à un REER au décès.
The will of a deceased taxpayer, who had been a member of a registered pension plan ("RPP"), provided for the bequest of all his property to his...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(27) | designation respecting RPP lump sum received by estate respecting disabled minor daughter and transferred to her RRSP | 370 |
| Tax Topics - Income Tax Regulations - Regulation 103 - Subsection 103(4) | withholding required where RPP administrator pays RPP lump sum directly to RRSP of disabled minor daughter beneficiary of estate | 335 |
Paragraph 60(n)
Subparagraph 60(n)(iii)
Administrative Policy
25 March 2002 Internal T.I. 2001-0113497 F - REMBOURSEMENT DE PRESTATIONS ASS. EMPLOI
The taxpayer received employment insurance benefits after losing his employment, then was required to repay them after his wrongful dismissal...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 60 - Paragraph 60(v.1) | repayment of EI benefits due to award of wrongful dismissal damages was deductible under s. 60(n)(iii) rather than s. 60(v.1) | 77 |
Subparagraph 60(n)(iv)
Administrative Policy
11 December 2009 Internal T.I. 2009-0350221I7 F - Prestations d'assurance emploi
The taxpayer included in computing income for the 2005 year employment insurance benefits - then following a settlement with the Commission de la...
Subparagraph 60(n)(v.1)
Administrative Policy
18 June 2015 External T.I. 2015-0578071E5 F - Reimbursement of overpayment of QPIP benefits
After becoming a non-resident of Canada, the taxpayer was required (in the “Repayment Year”) to repay excess benefits received by her in a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 4 - Subsection 4(2) | s. 60 deduction denied for repayment of previous income inclusion | 138 |
| Tax Topics - Other Legislation/Constitution - Federal - Financial Administration Act - Section 23 - Subsection 23(2) | general criteria for granting remission | 199 |
Paragraph 60(o) - Legal Expenses
See Also
Ridout v. The Queen, 2013 DTC 1209 [at 1115], 2013 TCC 260 (Informal Procedure)
Woods J found that the taxpayer could not deduct legal fees relating to the preparation of claims for a disability tax credit. A disability tax...
Administrative Policy
21 January 2016 CPA Personal Income Tax Roundtable Q. 7, 2016-0625731C6 F - Fees related to a voluntary disclosure
Does CRA allow deductibility of professional fees incurred by the taxpayer to defend its claim from the time it was informed by the CRA that its...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(cc) | VDP fees deductible if re business | 80 |
S4-F2-C1 - Deductibility of Fines and Penalties
Fees incurred to object to or appeal an assessment of penalties
1.39 Paragraph 60(o) provides a deduction for (among other things) certain fees or...
22 May 2014 Ponoka Liason Meeting Roundtable, 2014-0528451C6 - Cost of Making Voluntary Disclosure
This was a follow-up query on 2012-0437831E5, indicating that voluntary disclosure costs were not deductible, as they were neither incurred to...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Legal and other Professional Fees | costs of voluntary disclosure incurred by business | 80 |
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(cc) | costs of voluntary disclosure incurred by business | 80 |
17 October 2014 External T.I. 2014-0532121E5 F - Frais professionnels - Divulgation volontaire
Are legal or accounting expenses incurred respecting a voluntary disclosure deductible? After indicating that the deduction of such expenses...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Legal and other Professional Fees | voluntary disclosure fees generally non-deductible | 133 |
25 April 2014 Internal T.I. 2014-0524191I7 - Deductibility of legal fees
The taxpayer unsuccessfully appealed the disallowance of medical expense tax credits to the Tax Court. CRA stated:
the amounts deductible under...
5 December 2012 Internal T.I. 2012-0451331I7 F - Déductibilité de frais juridiques
The taxpayer incurred fees in making representations after being informed that amounts were owing for unpaid income taxes, sales tax and GST...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Legal and other Professional Fees | legal expenses incurred to minimize responsibility under guarantee were not connected to operations which were necessary or incidental to the earning of income | 220 |
5 June 2012 External T.I. 2012-0437831E5 - Professional Fees
"[A]ny legal or accounting fees or expenses relating to the filing of a voluntary disclosure are not deductible by the taxpayer under subsection...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose | 108 |
6 February 2012 External T.I. 2012-0434071E5 F - Honoraires professionnels - PDV
Regarding the deductibility of professional fees incurred in connection with a voluntary disclosure of undisclosed foreign investments, CRA...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Legal and other Professional Fees | professional fees incurred in applying under the VDP are not deductible | 177 |
26 August 1992 Memorandum 921728 (April 1993 Access Letter, p. 139, ¶C56-222)
Legal and accounting fees respecting a voluntary disclosure are not deductible under s. 60(o). Where a taxpayer had informed the Department that...
90 C.R. - Q15
S.60(o) does not authorize the deduction of expenses incurred in preparing and presenting an objection or appeal under the Excise Tax Act.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Legal and other Professional Fees | 36 |
Subparagraph 60(o)(i)
Administrative Policy
11 October 2019 APFF Roundtable Q. 5, 2019-0812641C6 F - Professional fees incurred in the context of a litigation with CRA
CRA addressed the deductibility under s. 60(o)(i) or 9 of the fees or expenses of professionals - incurred in dealing with questioning, demands...
Paragraph 60(o.1) - Idem [Legal Expenses]
Cases
Filion v. Canada, 2017 FCA 67
The taxpayer paid $35,813.78 in legal expenses between 1999 and 2003 to defend himself in a criminal prosecution for breach of trust and fraud by...
Administrative Policy
25 September 2014 External T.I. 2013-0500911E5 F - Legal Expense - Pension Benefit
The administrator of a defined benefit pension plan is seeking the authorization of the Office of the Superintendent of Financial Institutions...
19 November 2012 Internal T.I. 2012-0433201I7 - Legal fees incurred re: job reinstatement
Regarding a taxpayer's lawsuit for reinstatement of employment and associated retroactive pay, and to receive performance pay and other damages,...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(b) | 314 |
28 June 2004 Internal T.I. 2004-0073761I7 F - Dommages-intérêts-perte d'emploi
After the taxpayer was wrongfully dismissed, an arbitrator ordered that the taxpayer be reinstated and be paid his back pay. The corporate...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Retiring Allowance | damages for failure to reinstate the taxpayer were a retiring allowance | 89 |
| Tax Topics - Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(l.1) | reimbursement of legal costs incurred to recover damages for failure to reinstate were includible under s. 56(1)(l.1) | 122 |
| Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(c) | change regarding pre-judgment interest judicially ordered after 2003 | 95 |
25 April 2003 Internal T.I. 2003-0181797 F - FRAIS JURIDIQUES-DECISION
The arbitration tribunal ordered an investment advisor to pay damages to the RRSP of Ms. A respecting negligence in managing the portfolio. That...
31 July 2002 External T.I. 2002-0153135 F - FRAIS JUDICIAIRES
Are amounts paid by pensioners to an association representing them in court to recover part of the surplus accumulated in their pension plan...
26 September 1997 External T.I. 9723425 - ELIGIBLE AMOUNT, RESIDENCY
There is no requirement that an individual contributing to an FRA be a non-resident in order for the amount to qualify as an eligible amount.
Any...
24 March 1995 External T.I. 9424305 - LEGAL FEES
Fees paid to a party other than a firm of barristers and solicitors could qualify as legal expenses if they can be regarded as being for services...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(b) | 35 |
22 July 1992 Internal T.I. 7-921394
Legal expenses incurred to buy back pensionable years or to adhere to a pension plan are not deductible.
Paragraph 60(s)
Administrative Policy
3 May 2022 CALU Roundtable Q. 5, 2022-0928831C6 - Policy Loan Repayment
Where a taxpayer repays a policy loan and is thereby entitled to a deduction under s. 60(s) that exceeds the taxpayer’s income for the year, is...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 111 - Subsection 111(8) - Non-Capital Loss - A | excess s. 60 deductions do not generate non-capital losses | 158 |
Paragraph 60(t) - RCA distributions
Articles
Jim Kahane, Uros Karadzic, Simon Létourneau-Laroche, "A Fresh Look at Retirement Compensation Arrangement: A Flexible Vehicle for Retirement Planning", Canadian Tax Journal (2013) 61:2, 479 – 502.
Practical effect of limitation (p. 487)
In cases where an employee's contribution does not meet these conditions [for deduction under s....
Paragraph 60(v.1)
Administrative Policy
25 March 2002 Internal T.I. 2001-0113497 F - REMBOURSEMENT DE PRESTATIONS ASS. EMPLOI
The taxpayer received employment insurance benefits after losing his employment, then was required to repay them after his wrongful dismissal...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 60 - Paragraph 60(n) - Subparagraph 60(n)(iii) | repayment of EI benefits due to award of wrongful dismissal damages was deductible under s. 60(n)(iii) | 149 |