Involuntary Retirements Remission Order (C.R.C., c. 772)

Regulations are current to 2017-10-13

Involuntary Retirements Remission Order

C.R.C., c. 772

FINANCIAL ADMINISTRATION ACT

Order Granting Remission of Taxes Payable in Respect of Persons Involuntarily Retired from the Public Service

Short Title

 This Order may be cited as the Involuntary Retirements Remission Order.

Interpretation

 In this Order,

Act

Act means the Public Service Superannuation Act; (Loi)

employee

employee means a person who is or was employed in the public service of Canada; (employé)

pension

pension means an annuity within the meaning of the Act; (pension)

settlement

settlement means an amount received in respect of a loss of salary or pension benefits arising from the termination of employment of an employee; (paiement)

termination of employment

termination of employment means, with respect to an employee, the termination of his employment pursuant to subsection 20(12) of the Public Service Superannuation Regulations, as that subsection read on October 19, 1972. (cessation d’emploi)

Remission

  •  (1) Where, in the 1972 or any subsequent taxation year, a settlement was or is received by an employee or his legal representative because of the termination of employment, remission is hereby granted of the amount by which

    • (a) the income tax payable by him or his legal representative for the taxation year

    exceeds

    • (b) the aggregate of

      • (i) the tax that would have been payable by him or his legal representative for the taxation year if the settlement had not been received, and

      • (ii) the tax that, if the salary or pension in respect of which the settlement was paid had in fact been received by him or his legal representative in the taxation years in respect of which the settlement was paid, would have been payable less the tax that was so paid in respect of those years

    together with the interest, if any, payable on that amount.

  • (2) Subsection (1) applies to the widow or child of an employee, as the circumstances require.

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