I-3 - Taxation Act

Section 135.1 Disposition versions

2006-03-01

135.1. Paragraph c of section 135 does not apply in respect of a contribution made to an employee benefit plan, to the extent that

(a)  the contribution

i.  is made in respect of services performed by an employee who is not resident in Canada and is regularly employed in a country other than Canada, and

ii.  cannot reasonably be regarded as having been made in respect of services performed or to be performed during a period when the employee is resident in Canada;

(b)  when the custodian of the plan is not resident in Canada, the contribution

i.  is made in respect of an employee who is not resident in Canada at the time the contribution is made, and

ii.  cannot reasonably be regarded as having been made in respect of services performed or to be performed during a period when the employee is resident in Canada; or

(c)  when the custodian of the plan is not resident in Canada, the contribution can reasonably be regarded as having been made in respect of services performed by an employee during a particular month, if the employee

i.  was resident in Canada throughout no more than 60 of the 72 calendar months ending with the particular month, and

ii.  became a member of the plan before the end of the month after the month in which he became resident in Canada.

For the purposes of subparagraph c of the first paragraph, where the benefits provided in respect of an employee under a particular employee benefit plan are replaced by the benefits provided under another employee benefit plan, the other plan is deemed, in respect of the employee, to be the same plan as the particular plan.

1982, c. 5, s. 39; 1991, c. 25, s. 176; 1995, c. 49, s. 45.