4 April 1990 Ruling 59781 F - Transfer of Retiring Allowance - Person Related to Employer

By services, 18 January, 2022
Official title
Transfer of Retiring Allowance - Person Related to Employer
Language
French
CRA tags
60(j.1)(ii)
Document number
Citation name
59781
Severed letter type
Ruling
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
633593
Extra import data
{
"field_external_guid": [],
"field_proprietary_citation": [],
"field_release_date_new": "1990-04-04 08:00:00",
"field_tags": []
}
Main text
19(1) File No. 5-9781
  Maureen Shea-DesRosierss
  (613) 957-8953

April 4, 1990

Dear Sirs:

Re: Transfer of Retiring Allowance Paragraph 60(j.1)(ii) of the Income Tax Act (the "Act") "Person related to the employer"

This is in reply to your letter of March 15, 1990 wherein you request the Department's interpretation of the words "person related to the employer" as found in paragraph 60(j.1)(ii) of the Act.

You describe the following situation:

24(1)

Our Comments

Since the Federal Government controls the 24(1) the Public Service, the RCMP and the Armed Forces, it is our view that these employees are related for the purposes of the Income Tax Act. Accordingly, for the purposes of determining the amount of a retiring allowance that an employee is eligible to transfer to an RRSP, the years of prior service with any of the above employers would be included in the calculation under clause 60(j.1)(ii) of the Act regardless of whether the employee did or did not elect to repurchase such prior service under the PSSA.

We trust the above comments will be of assistance to you.

Yours truly,

Wayne Douglasfor DirectorFinancial Industries DivisionRulings Directorate