19(1) 5-9267
M. Shea-DesRosiers
(613) 957-8953January 12, 1990
Dear Sirs:
Re: Paragraph 60(j) of the Income Tax Act
This is in reply to your letter of December 18,1989 and further to our telephone conversation 19(1) Douglas) of December 19, 1989 concerning the above-mentioned subject.
You mention that your client 24(1) pursuant to the Judge's Act 1985 R.S.C. c. J-1. You point out that subsection 50(3) of the Judge's Act provides that for the purposes of the Income Tax Act amounts contributed by a judge to the Consolidated Revenue Fund are deemed to be contributed to or under a registered pension fund or plan.
Since contributions to the Consolidated Revenue Fund are deemed to be contributions to a registered pension fund or plan, you enquire as to whether payments made out of the Consolidated Revenue Fund to a judge upon retirement will be characterized as a payment out of or under a registered pension fund or plan for the purposes of paragraph 60(j) of the Income Tax Act so that the annuity received by the retired judge can be rolled into a Registered Retirement Savings Plan.
The deduction permitted under paragraph 60(j) of the Income Tax Act is limited to the amount included in the taxpayer's income by virtue of subparagraph 56(1)(a)(i) of the Income Tax Act where the amount is received out of a registered pension fund or plan. Although subsection 50(3) of the Judge's Act deems amounts contributed by a judge to the Consolidated Revenue Fund to be contributions to a registered pension fund or plan for purposes of the Income Tax Act, it is the Department's view that the Judge's Act does not create a registered pension fund or plan.
In consequence, annuities under the Judge's Act do not qualify for a transfer under the provisions of paragraph 60(j) of the Income Tax Act.
We trust the above comments will be of assistance to you.
Yours truly,
for Director Financial Industries Division Rulings Directorate