| 19(1) | 5-903282 |
| D.S. Delorey | |
| (613) 957-3494 |
December 5, 1990
19(1)
This is in reply to your letter of November 8, 1990.
24(1) referred to in your letter is presumably a plan or arrangement of the type described in paragraph 6801(a) of the Income Tax Regulations (the "Regulations"), a copy of which is enclosed for your information. If your arrangement with the 24(1) meets the requirements set out in that paragraph 6801(a), the portion of the salary now being deferred by you will be included in your income for the year in which it is received. Whether or not your arrangement meets those requirements can be determined only by reviewing a copy of the relevant documentation.
The requirement relevant to your question is set out in subparagraph 6801(a)(i) of the Regulations. As noted therein, the requirement is that the leave of absence must not commence on a date that is later than six years after the date the deferrals of your salary commenced. Thus, if those deferrals commenced on September 1, 1987 as stated in your letter, the commencement of your one year's leave of absence on September 1, 1992 would satisfy that requirement.
We trust that our comments are of assistance.
Yours truly,
for DirectorFinancial Industries DivisionRulings Directorate