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:
A taxpayer has asked the Minister to explain why an income tax ruling request is taking so long.
Position:
No information can be provided specific to any possible ruling request but general information on the issue may be.
Reasons:
The writer refers to a file number which identifies the referral as an advance income tax ruling request. Authorization to discuss any ruling request with specific persons must be provided by the person requesting the ruling.
Signed October 7,1999
XXXXXXXXXX
Dear XXXXXXXXXX:
The Honourable Martin Cauchon, Minister of National Revenue, has asked me to reply to your letters of July 7 and 31, 1999, addressed to his predecessor, the Honourable Herb Dhaliwal, concerning the status of a referral made by XXXXXXXXXX, on the payment of severance pay to a pension fund.
In your second letter, you indicated that the file reference number is XXXXXXXXXX, which identifies the referral as a request for an advance income tax ruling. The confidentiality provisions of the Income Tax Act preclude me from commenting on the status of any advance income tax ruling request without authorization from the particular parties that have requested the ruling. Accordingly, I cannot comment on the specific referral by XXXXXXXXXX, although I can assure you that requests for advance income tax rulings are processed on a priority basis.
In general, I can say that the total amount of severance pay is included in your income in the year and a deduction is available for the eligible portion of the severance payment transferred into your registered pension plan. The eligible portion is generally limited to $2,000 for each year of employment prior to 1996 for members of registered pension plans. However, if an individual is entitled to a severance payment but agrees to have the payment paid to a registered pension plan without being included in income, it could result in the revocation of the registration of the pension plan and this could affect the payment of future pension benefits.
I appreciate the opportunity to address your concerns.
Yours sincerely,
Bill McCloskey Assistant Deputy Minister Policy and Legislation Branch
Wayne Harding
957-9769
992408
September 29, 1999
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