23 October 1989 Income Tax Severed Letter AC58673 - Transfer of Retiring Allowances

By services, 22 July, 2022
Official title
Transfer of Retiring Allowances
Language
English
Document number
Citation name
AC58673
Severed letter type
Miscellaneous
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
656621
Extra import data
{
"field_external_guid": [],
"field_proprietary_citation": [],
"field_release_date_new": "1989-10-23 08:00:00",
"field_tags": []
}
Main text
5-8673
       19(1)                F. Francis
                            (613) 957-3496
October 23, 1989

Dear Sirs:

This is in reply to your letter of September 11, 1989, wherein you requested a technical interpretation on the applicability of paragraph 60(j.1) of the Income Tax Act (the "Act") in the following situation:

                   24(1)

It would appear that the above-described situation represents a proposed factual transaction. As noted in Information Circular 70-6R, we do not give opinions in respect of proposed transactions other then as a reply to an advance income tax ruling request. Nevertheless we will offer the following general comments.

By virtue of subparagraph 60(j.1)(v) of the Act the phrase "person related to the employer" includes a previous employer of the retiree whose service is recognized in determining the retiree's pension benefits. The number of years during which the individual was employed by the previous employer who is a "person related to the employer" would therefore be included in the calculation of retiring allowance for the individual under paragraph 60(j.1) of the Act.

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

Yours truly,

for Director Financial Industries Division Rulings Directorate