| 19(1) | File No. 5-8351 |
| R.B. Day | |
| (613) 957-2136 |
August 18, 1989
19(1)
We are writing in reply to your letter of June 19, 1989, addressed to John McKinnerey of the Department of Indian and Northern Affairs, in which you requested advice as to whether or not disability pension income, received under the Canada Pension Plan, would be considered to be "periodic pension payments" exempt from income tax under the Indian Remission Order applicable to the 1988 and 1989 taxation years.
As we understand it, you have paid into the Canada Pension Plan from tax-exempt income and have, since 1988, been receiving a disability pension from the Canada Pension Plan.
Our Comments
Benefits received out of the Canada Pension Plan are taxable to all recipients under present legislation. There is no distinction made with respect to the source of the pensionable earnings. The Indian Remission Order does not apply to disability or other benefits received from the Canada Pension Plan.
We hope these comments are of assistance to you.
Yours truly,
for DirectorSmall Business and General DivisionSpecialty Rulings DirectorateLegislative and IntergovernmentalAffairs Branch