5-910477
Dear Sirs:
Re: Subsection 146(8.1)
We are writing in reply to your letter of February 12, 1991, in which you request a technical interpretation of the above noted provision.
You first ask whether the reference to the taxation year in the phrase "an amount paid in a taxation year" is to the taxation year of the deceased's estate receiving the payment or to the taxation year of the beneficiary who joins in the designation.
It is our view that the taxation year is that of the deceased annuitant's estate, that being the estate's taxation year in which the amount is paid.
You also ask whether the reference to the year in the phrase "received by the beneficiary in the year" is to the taxation year payment is received by the deceased annuitant's estate, to the calendar year in which the RRSP payment was made, or to the calendar year in which the designation is made.
This reference is to the taxation year payment is received by the estate which must also, for purposes of the Act, be the year for which the joint designation is made. For example, if the estate has a fiscal year end of January 30th and payment is received January 29th, the joint designation must be made in the trust return for that year ended January 30th. The beneficiary will then be required to include the amount in income in the same year (i.e. the calendar year in which the estate's fiscal year ended) and may make a contribution of that amount to his or her RRSP in the calendar year or within 60 days thereof.
Although these comments reflect an opinion only and are therefore not binding on the Department, we trust they are of assistance.
Yours truly,
for DirectorFinancial Industries DivisionRulings Directorate