ACC 742 Lecture Notes - Lecture 7: Tax Deduction, Pension, Tax Shelter
20 Apr 2016
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Document Summary
Catch-all" category that captures taxable income not from a primary source. Specific list in s. 56 59. 1. Includes cpp, oas, provincial pensions, private pensions, foreign pensions, death benefits retiring allowances 56(1)(a)(ii) Deduction for payer if 5 tests are met (all 5 must be met; tests came into effect april. Deduction for rrsp contribution therefore income inclusion upon withdrawal: opposite of tfsa (tax-free savings account) Paid to establish a right to receive a retiring allowance or a private pension. 56(1)(n) - scholarships, bursaries, fellowships & awards in excess of exemption full exemption per 56(3)(a) effective from 2006 onwards as long as the student is entitled to an education tax credit. Only income is taxable per s. 146. 7 (trust taxation) Once beneficiary (student) is enrolled in a qualifying education program at a post- secondary educational institution, payments can be received (known as eap"s . Income earned in the resp plus cesg grant amount is taxable.
