Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues:
Are contributions to a specified multi-employer plan computed pursuant to a formula not provided in the plan deductible?
Position TAKEN:
No
Reasons FOR POSITION TAKEN:
Contributions not deductible under 147.2(1)(c) because not made in accordance with the plan and 147.1(4) not met.
5-943210
XXXXXXXXXX G. Martineau
Attention: XXXXXXXXXX
March 23, 1995
Dear Sirs:
Re: Multi-Employer Pension Plan
This is in reply to your letter of November 18, 1994 concerning the deductibility of the employers contributions to a registered pension plan that is a specified multi-employer plan where contributions would be based on the average contribution rate for the members of the group; that formula is not provided in the pension plan.
An employer may deduct a contribution to a registered pension plan that is a specified multi-employer plan where the contribution was made in acordance with the plan as registered pursuant to paragraph 147.2(1)(c) of the Income Tax Act (the "Act"). It is our view that a contribution computed under a formula not provided in the registered pension plan would not be deductible.
Paragraph 147.1(4) of the Act mentions that the Minister shall not accept an amendment to a registered pension plan unless application for the acceptance is made in prescribed manner by the plan administrator, the amended plan complies with prescribed conditions for registration and the amendment complies with prescribed conditions.
The above comments reflect an expression of opinion only and are not binding on the Department, as explained in paragraph 21 of Information Circular 70-6R2. We trust, however, that they are of assistance.
Yours truly,
for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 1995
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 1995
Email this Content