7 May 1991 Income Tax Severed Letter

By services, 22 July, 2022
Language
English
Document number
Severed letter type
Miscellaneous
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
657278
Extra import data
{
"field_external_guid": [
"menu:://Federal Income Tax [CCH Tax ]/Tax Window Files/Tax Window Files/Tax Window Files/1990s/1991 [JN91_149.150 - MA91_334.338]/MA91_228 — Transfer of Funds from EPSP to DPSP not Permitted"
],
"field_proprietary_citation": [],
"field_release_date_new": "1991-05-07 08:00:00",
"field_tags": []
}
Main text
24(1)                     5-910864
                                    M. Shea-DesRosiers
                                    (613) 957-8953
          19(1)

May 7, 1991

Dear Sirs:

This is in reply to your letter of March 25, 1991 concerning the holding of company shares (purchased with the employer's contributions) in an Employees Profit Sharing Plan ("EPSP") subject to being transferred at the end of the year to a Deferred Profit Sharing Plan ( DPSP") on behalf of the employees.

Since only transfers of funds between registered plans are authorized under the Income Tax Act (the "Act"), and the EPSP is a plan that is not required to be registered with the Department, a transfer of funds from the EPSP to a DPSP would not be permitted under the Act.

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

Yours truly,

for Director Financial Industries Division Rulings Directorate

                                                           000228