Income Tax Regulations — 6804
ciary under a deferred profit sharing plan, to which a contributor, or a person or body of persons not dealing at arm’s length with a contributor, makes, or is required to make, contributions in relation to the year; (d) contributions made in the year under the foreign plan for the benefit of individuals resident in Canada are reasonable in relation to contributions made under the plan for the benefit of non-resident individuals; and (e) the foreign plan is not a pension plan the registration of which under the Act has been revoked. Contributions Made in 1992, 1993 or 1994 (5) For the purpose of paragraph 207.6(5.1)(a) of the Act, a contribution made under a foreign plan by a person or body of persons at any time in 1992, 1993 or 1994 in respect of services rendered by an individual to an employer is a prescribed contribution where (a) the contribution is paid to a qualifying entity; (b) the employer is an electing employer for the year with respect to the foreign plan; (c) if the employer is not at that time a foreign non-profit organization, the individual is not a member of a registered pension plan (other than a specified multi-employer plan, as defined in subsection 147.1(1) of the Act), or a deferred profit sharing plan, in which the employer, or a person or body of persons that does not deal at arm’s length with the employer, participates; and (d) either (i) the employer is (A) a corporation that is not resident in Canada at that time, (B) a partnership that makes contributions under the foreign plan primarily in respect of services rendered outside Canada to the partnership by non-resident employees, or (C) a foreign non-profit organization at that time, or (ii) the individual was non-resident at any time before the contribution is made and became a member of the foreign plan before the end of the month after the month in which the individual became resident in Canada. Contributions Made after 1994 (6) For the purposes of paragraph 207.6(5.1)(a) of the Act, a contribution made under a foreign plan by a person or body of persons at any time in a calendar year after 1994 in respect of services rendered by an individual to an employer is a prescribed contribution where (a) the contribution is paid to a qualifying entity; (b) the employer is an electing employer for the year with respect to the foreign plan; (c) if the employer is at that time a foreign non-profit organization, (i) the amount that, if subsection 8301(1) were read without reference to paragraph (b) of that subsection, would be the individual’s pension adjustment for the year in respect of the employer is nil, or (ii) the amount that would be the individual’s pension adjustment for the year in respect of the employer if (A) all contributions made under the foreign plan in the year in respect of the individual were prescribed by this subsection, (B) where the year is 1996, section 8308.1 were read without reference to subsection (4.1), and (C) where the year is 1997, subparagraph 8308.1(2)(b)(v) were read as “(v) the amount, if any, by which 18% of the individual’s resident compensation from the employer for the year exceeds $1,000, and” does not exceed the lesser of (D) the money purchase limit for the year, and (E) 18% of the individual’s compensation (as defined in subsection 147.1(1) of the Act) for the year from the employer; (d) if (i) the employer is at that time a foreign non-profit organization, and (ii) a period in the year throughout which the individual rendered services to the employer would be, under paragraph 8507(3)(a), a qualifying period of the individual with respect to another employer if that paragraph were read without reference to subparagraph (iv) of that paragraph, subsection 8308(7) applies with respect to the determination of the individual’s pension adjustment for the year with respect to each employer; and (e) if the employer is not at that time a foreign non-profit organization, (i) the individual was non-resident at any time bef