spaceman.spiff

Hi :

In essence, I was wondering if anyone has had experience with the following scenario :

• My Nortel UK Pension Plan (final salary defined benefit) is being wound up shortly so I must transfer out
• I am a Canadian resident so the CRA's "world wide income" rule applies
• With no ROPS plan available in Canada, I am leaning toward transferring to an AJ Bell SIPP (still within the UK)
• The transfer will be direct from the DB pension to the SIPP (no money passes through "my hand" so to speak)
• Will the CRA consider the transfer a "taxable event" and so treat the transferred amount as revenue in the year of the transfer?

Now, this seems like an obvious "no" and I've spoken to a few CRA agents that have confirmed that there will be no tax consequence (until I start to drawdown in the future). However, I have heard some contradicting information that suggests that it could be taxable which of course would be hugely painful.

I would like to hear from others that have already done this. Did you have any trouble with the CRA? Do they even know (i.e. did you submit a T1135)?

Cheers!