| October 6, 1989 | |
| VANCOUVER DISTRICT TAXATION | Technical Interpretations |
| OFFICE | Division |
| D. Lanos | |
| ATTN: Paul E. Seguin | (613) 957-9231 |
| Director - Taxation |
Subject: 19(1)
The Minister is in receipt of a letter dated July 25, 1989, from 19(1) 19(1) requesting a complete remission of tax under the Financial Administration Act in respect of a lump sum payment, received for Canada Pension Plan disability benefits for the years 1983 to 1988 and included in her 1988 income.
A report is requested in accordance with TOM 2263.24(2) detailing any information which may assist us in our review as well as your recommendation as to whether a remission should be favourably considered. In the preparation of your report, please focus on the taxpayer's age and health (medical certificates are required to support the taxpayer's listed medical problems) as well as the extreme hardship or financial setback that will be suffered should a remission be denied.
In addition, we require the taxpayer's T1 Returns for the years 1983 to 1988 or, alternatively, a TAPMA printout if T-1's are unavailable.
Would you please obtain a breakdown of the 24(1) lump sum received (noting any interest element) and determine the CPP disability benefit received for each of the years 1983 to 1988. Please prepare a notional computation of the tax if any, that would have resulted had the taxpayer actually received her CPP benefits in each of those years together with a computation of the additional tax payable by virtue of the 1988 lump sum inclusion.
Attached are photocopies of the relevant correspondence.
Please telephone the author when this file is assigned so that we can establish a liaison with the officer responsible for the preparation of the report. Please forward your report and recommendation to the undersigned. Your early attention to this matter would be greatly appreciated.
A.G. Cockell, Director Technical Interpretations Division Legislative and IntergovernmentalAffairs Branch
Enclosures
Stalled 434 562 229 19(1)