| 5-920918 | |
| P. Spice | |
| 957-8953 |
April 7, 1992
Client Assistance DirectorateFinancial Industries Division
Mrs. Pauline McNallyA/Director General
Repayment of Return of Pension Plan Contributions
We are forwarding the attached letter from 24(1) for your action. We have advised 19(1) that if this repayment constituted a buy-back of past service while a contributor, the deduction is limited by paragraph 147.2(4)(c) of the Income Tax Act to $3500 per year less current service contributions and past service contributions while not a contributor. If, however, the return of contributions was made in error, we understand that the Department can take an administrative position to permit a deduction for the full amount repaid in each year. Mr. Rick Owen confirmed in a telephone conversation (Spice/Owen) of April 3, 1992, that your directorate has handled these cases before and suggested that we forward the attached letter.
Thank you for your assistance herein.
for DirectorFinancial Industries DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch