6 January 2009 External T.I. 2008-0289341E5 F - EET - Règles transitoires -- summary under Salary Deferral Arrangement

After quoting the transitional rule for the introduction of the salary deferral arrangement rules, generally effective July 1, 1986 except regarding inter alia deferred amounts (“under an agreement in writing made before February 26, 1986”) “in respect of … services rendered by the taxpayer after June 1986, where the taxpayer is obliged to defer the receipt of the amount and cannot cancel or otherwise avoid that obligation,” CRA found that the contracts presented were not grandfathered given that they ” were not signed before February 26, 1986” and “there is no evidence that the taxpayer had an obligation to defer receipt of an amount and could not cancel or otherwise avoid that obligation.”