29 August 1989 Income Tax Severed Letter AC58393 - Contribution to Registered Pension Plan for Past Services while not a Contributor

By services, 22 July, 2022
Official title
Contribution to Registered Pension Plan for Past Services while not a Contributor
Language
English
Document number
Citation name
AC58393
Severed letter type
Miscellaneous
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
656903
Extra import data
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"field_proprietary_citation": [],
"field_release_date_new": "1989-08-29 08:00:00",
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Main text
5-8393
                                 M.Shea-DesRosiers
                                 (613) 957-8953

August 29, 1989

Re: Contribution to Registered Pension Plan # 34578 for Past Services While Not a Contributor

This is in reply to your letter of July 20, 1989 concerning the refund of pension contributions you made in 1988 for the period of September 1984 to June 1985.

Regardless of whether or not contributions to a pension plan were previously deducted from income, the Income Tax Act provides that payments out of a pension plan are taxable under the provisions of paragraph 56(1)(a).

You are therefore required to report the full refund as a pension benefit and tax will have to be withheld on payment of the refund under subsection 153(1) of the Income Tax Act.

We regret to inform you that there is no administrative relief in a case such as yours.

Yours truly, for Director Financial Industries Division Rulings Directorate