Principales Questions: (1) Whether a lump-sum received in satisfaction of a series of periodic payments from a SERP is a qualifying amount for the purposes of sections 110.2 and 120.31? (2) Whether a T1198 Form has to be filed when a retroactive lump-sum payment of a SERP is a qualifying amount and is $3,000 or more?
Position Adoptée: (1) Yes, provided that the SERP does not fall under the definition of "salary deferral arrangement" in subsection 248(1). (2) No.
Raisons: (1) Depending upon the terms of the plan, the amount paid may be considered as a "superannuation or pension benefit", as defined in subsection 248(1), and may be a "qualifying amount" under subsection 110.2(1). (2) There is no legislated requirement in the Act or in the Income Tax Regulations that requires a payor to issue a Form T1198. However, it would seem appropriate for a payor to issue a Form T1198, thereby permitting the recipient to benefit from the lump-sum averaging provisions.