| 19(1) | File No. 5-9410 |
| G. Ozols | |
| (613) 957-2139 |
February 5, 1990
Dear Sirs:
Re: Structured Settlement 19(1)
Your letter of December 13, 1989 to the London District Taxation Office has been referred to us for reply. You have requested an opinion that certain monthly payments received by the above-noted taxpayers or their respective estates will not be subject to tax under any provisions of the Income Tax Act of Canada.
The payments are being made pursuant to a structured settlement arising out of a legal action for damages resulting from personal injuries suffered by the plaintiff taxpayers. You believe that the settlement complies fully with the requirements for a tax-free settlement as stated in Interpretation Bulletin IT-365R2.
We have reviewed the facts and documentation provided in your submission and it appears that the requirements in IT-365R2 have been met. However, we wish to emphasize that since the settlement agreement has already been executed and the payments have begun, this opinion is not an advance ruling and is not binding on Revenue Canada, Taxation.
We trust the above is of assistance to you.
Yours truly,
P.D. Fuoco for DirectorBusiness and General DivisionSpecialty Rulings DirectorateLegislative and Intergovernmental Affairs Branch
c.c. Kitchener District Office