non-resident of Canada and member of an employer-sponsored pension plan

[Darksith79]

Hello Guys,

i have a situation that got me really confused, and i really could use your help !!
i have made a short landing in 2018 and returned to work in the UAE for a couple more years, i intend to settle in a few months in Canada.
issue is , my company has a company sponsored pension plan which they pay as a lump sum upon resignation, the payment processing take a couple months and by the time it's done i will be already in Canada, now my question is to know whether this lump sum amount is taxable under canadian tax law, i am confused because this income was generated before i became a resident for tax purposes.

any advice would be welcome!

 

[Copingwithlife]

I would call the CRA, however it is typically not when the income was generated, but when it is paid OUT, when taxes are applicable. Example, many will work 15 Dec-31 2019 Dec, that money will be PAID out IN 2020, hence taxes on work done/generated in 2019, will be paid out in 2020. If the lump sump is paid out in 2020, then that is when the taxes are due. However when it gets into sponsored pension plans I would call the CRA directly, and ask for a senior agent