Peter K. Noack (613)957-8963
February 8, 1988 Dear Sirs:
We reply to your letter of January 4 concerning the treatment for tax purposes of benefits under the Canada Pension Plan and payments under registered pension plans to Indians.
We confirm that Canada Pension Plan benefit payments to Indians must be included in the recipients' income for the purposes of the Income Tax Act.
The question of the taxability of pension payments to Indians is presently under review. We are, therefore, at this time, unable to confirm that annuity payments in the circumstances you describe are not includable in income for tax purposes.
Yours truly,
for Director Financial Industries Division Rulings Directorate