5-912867
Dear Sirs:
Deferred Salary Leave Plan for Teachers
We are writing in reply to your letter of October 3, 1991, concerning the requirement that a deferred salary leave plan provide for a minimum six consecutive months leave of absence.
The requirement you are referring to is contained in Regulation 6801 of the Income Tax Act (the "Act") and the Department is unable to grant any administrative relief in this regard. We have recently revised our position, however, with respect to the periods which teachers may include to meet the six consecutive months requirement.
If a teacher is employed but is not required to report to work in a period between semesters, this time between semesters may be included in the calculation of the minimum period of leave of absence.
We note that in your district teachers are not credited for work in August or, we assume, in July. In these circumstances, unfortunately, it will not be possible for a teacher to take a leave of absence which coincides with a school semester. A person must be employed in order that a leave of absence can occur.
We are sorry our reply cannot be more favourable.
Yours truly,
for DirectorFinancial Industries DivisionRulings Directorate