Federal Government Releases Draft PRPP Tax Rules For Consultation
Following its introduction of Bill C-25 on November 17, 2011 (see my prior blog post), the federal government released for consultation a package of draft legislative proposals under the Income Tax Act to accommodate the creation of Pooled Registered Pension Plans (PRPPs) within the basic system of rules and limits currently applicable to registered pension plans (RPPs) and RRSPs. It is anticipated that the introduction of these new tax rules will “set the stage” for provincial legislation required to implement PRPPs beyond federal “included employment”.
The stated objectives of the tax proposals are to put in place PRPP rules which are “simple and straightforward to promote low-cost plans, take-up by employers and pension coverage among Canadians”.
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