11 April 1990 Income Tax Severed Letter AC59790 - Retirement Compensation Arrangement

19(1)                                             5-9790
                                                  D. Duff
                                                  (613) 957-3498

April 11, 1990

Dear Sirs:

This is in reply to your letter of March 20, 1990 and further to the telephone conservation 19(1) Duff) of April 2, 1990, regarding the existence of a Retirement Compensation Arrangement (RCA).

Generally, a RCA is an arrangement under which an employer makes contributions to a custodian in connection with benefits that are to be, or may be, received on retirement or loss of employment. It is a question of fact whether contributions to a trust are made to provide retirement or pensions benefits under such an arrangement.

We are unable to express an opinion on the existence of a RCA in the two situations described by you since these are completed transactions. Such requests should go to the relevant district taxation office. We will express an opinion as part of an advance income tax ruling request where the subject matter is that of a proposed transaction and all of the relevant facts can be established at the time of the request. Such a request must be submitted in the manner described in Information Circular I.C. 70-6R.

Yours truly,

for Director Financial Industries Division Rulings Directorate