Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues:
Can relief be provided to the Red River Flood victims through RRSP's?
Position:
No
Reasons:
Decisions re relief made at cabinet level.
ASSOCIATE DEPUTY MINISTER'S OFFICE (1)
ADM'S OFFICE (2) # 97-04132M
PENDING COPY
RETURN TO INCOME TAX RULINGS
AND INTERPRETATIONS DIRECTORATE
15TH FLOOR, ALBION TOWER
Signed on July 14, 1997
XXXXXXXXXX
Dear XXXXXXXXXX:
The Honourable Herb Dhaliwal, Minister of National Revenue, has asked me to reply to your letter of June 18, 1997, wherein you suggested that tax relief be provided to help the victims of the Red River Flood disaster finance the rebuilding of their homes.
In your letter you suggest that Revenue Canada provide the victims with economic aid by allowing them to withdraw funds, tax-free, from their registered retirement savings plan or allowing them to claim an income tax deduction for the amount they have to spend to rebuild their homes.
The federal government has provided financial assistance to the Manitoba flood victims under the Disaster Financial Assistance Arrangements, under the ReStart Program, under the Government of Canada Youth Employment Strategy and under the Crop Restoration Program. In addition, the Minister of National Revenue has already announced that he will recommend a remission order to eliminate any tax consequences for reasonable relief payments employers provide to their employees.
The determination of whether any additional economic aid will be provided and the form that it will take is a matter of general governmental policy. Since the Minister of Finance to whom, I note, you have already written will be involved in considering such policy, your suggestions will be taken under consideration.
Please be assured that your comments have been noted.
Yours sincerely,
Denis Lefebvre Assistant Deputy Minister Policy & Legislation Branch
M. Sarazin
957-3499
971691
July 2, 1997