19(1)
August 11, 1989
19(1)
I am writing in response to your letter of August 2, 1989 and our meeting of August 3, 1989 concerning source deductions that are being withheld on pensions being received by several members of the 24(1)
You advised me that the pensions being received are all subject to the Indian Remission Order however the amounts received have been taxed in the normal manner. The letter received by one of the members from the Superannuation Branch of Supply and Services Canada states that a letter is required from Revenue Canada stating that no tax is to be withheld.
We have reviewed this situation and think that the utilization of the provisions of subsection 153(1.1) of the Income Tax Act should provide the desired results. Each member should write to Mr. John Flynn, the Chief of Source Deductions at our Hamilton District Office, P O Box 2220, 1550 Main St. W., L8N 3E1 (telephone no. 416-572-2667) and confirm that the pension that they are receiving is subject to the Indian Remission Order and request a waiver of source deductions on their pension. Mr. Flynn will then be able to provide the letter required by Supply and Services. He may require details of the member's total anticipated income from all sources for the year.
I trust that this will rectify the problems being encountered at this time.
Yours truly,
B.W. DathDirectorSmall Business and General DivisionSpecialty Rulings DirectorateLegislative and IntergovernmentalAffairs Branch