| Citation: |
CANADA v. YUDELSON, 2010 FCA 44, [2010] 1 F.C.R. D-11 |
A-116-09 |
Income Tax
Exemptions
Appeal from Tax Court of Canada order (2009 TCC 80) allowing respondent’s appeals from assessments made under Income Tax Act, R.S.C., 1985 (5th Supp.), c. 1, ss. 56(1)(a), 147.3(1) for 2001 taxation year—Respondent employed by Den Packaging Corporation—Upon retirement, purchasing non-indexed annuity for pre-indexation value of “Den Packaging Corporation Pension Plan”, Registered Pension Plan (RPP) with defined benefits (DB)—Respondent transferring remainder of Plan funds into RRSP—Respondent claiming amount exempt from inclusion as income by virtue of exception in Act, s. 147.4(4)(c)—Whether whole indexation portion of Plan could be rolled over tax free into RRSP immediately after respondent purchasing non-indexed annuity with non-indexation portion of Plan, receiving $52 934.12 of life retirement benefits (LRBs)—RRSP, indexed annuity different savings vehicles—Tax Court Judge erring when including annualized value of indexation payments in calculating value of respondent’s commuted LRBs for 2001 tax year—Respondent effectively attempting to convert DB RPP into an RRSP without tax consequences, which is not permitted under letter, spirit of Act—Value of respondent’s commuted LRBs nil, consequently, any funds transferred by respondent in 2001 from Plan to RRSP qualifying as income under Act, s. 56(1)(a)(i)—Appeal allowed.
Canada v. Yudelson (A-116-09, 2010 FCA 44, Trudel J.A., judgment dated February 15, 2010, 30 pp.)