Words and Phrases - "pension"

a
82
b
44
c
75
d
50
e
37
f
31
g
17
h
13
i
71
j
2
k
2
l
30
m
51
n
25
o
38
p
79
q
2
r
74
s
85
t
44
u
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v
8
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20
y
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6 April 2023 Internal T.I. 2022-0929731I7 - Articles 18(2) and (3) of the Canada-Italy Treaty

Summary Under
Tax Topics - Treaties - Income Tax Conventions - Article 18
CPP and OAS payments treated as pensions and social security payments under the Canada-Italy Treaty

Regarding the receipt by an individual resident in Italy of periodic Canada Pension Plan (“CPP”) and Old Age Security (“OAS”) benefit payments, the Directorate found that

  • Art. 18(2) of the Canada-Italy Treaty limits the tax on Canadian-source pension income (including CPP) to the lesser of 15% of the total such income exceeding $12,000 and the amount of tax (referred to as the “as-if-resident” or “AIR” amount) that a resident of Canada would pay on that income.
  • Art. 18(3) of the Treaty limits the tax on OAS income to the AIR amount (with the result that “[i]n most cases, that rate of tax is 25% in accordance with subsection 212(1).”)

The Directorate also stated:

One consequence of the different treatment is that unless the AIR amount is NIL, two separate calculations will be required in respect of CPP and OAS amounts paid to a resident of Italy.

Words and Phrases
pension
Locations of other summaries Wordcount
Tax Topics - Other Legislation/Constitution - Federal - Income Tax Conventions Interpretation Act - Section 5 CPP and OAS are normally considered pensions for Treaty purposes 90

31 July 2002 Internal T.I. 2002-0136937 F - Placement Français "Assurance-salaire-vie

Summary Under
Tax Topics - Treaties - Income Tax Conventions - Article 18
withdrawal from French employee-contribution plan (assurance-salaire-vie) was not a “pension”

The holder in France of an "assurance-salaire-vie," which is similar to a registered retirement savings plan except that a withdrawal from it is taxable only if made within the first eight years of the contribution, immigrates to Canada. The Directorate indicated that it was unlikely that withdrawals from the plan would be exempted under Art. XVIII(1) of the France-Canada Convention as a “pension” as the only contributions were employee contributions, nor would they qualify as an :annuity” per Art. XVIII(3). Under Art. XXI of the Convention, the withdrawals could be taxed in Canada, and also in France.

Words and Phrases
pension
Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 233.3 - Subsection 233.3(1) - Reporting Entity cost amount of foreign retirement plan may have been stepped up under s. 128.1(1) 68