Principal Issues: 1) Can the taxpayer transfer an amount currently held in a 401(k) plan to an RRSP under paragraph 60(j) of the Act? 2) Can the taxpayer claim the US withholding taxes under subsection 126(1)? 3) Is the 10% additional US tax payable on the early withdrawal from a 401(k) plan considered a non-business-income tax as defined by subsection 126(7) of the Act?
Position: 1) Yes. 2) Yes 3) Yes
Reasons: 1) The payment meets the conditions of paragraph 60(j). 2) The amount withheld under Section 1441 of the Code is an income or profits tax. 3) The 10% additional US tax imposed under Section 72 of the Code is an income or profits tax.