Personal Tax Planning: Canadian Taxation of Foreign Pension Distributions and Accruals

This article analyzes the Canadian tax characterization of different types of plans that are colloquially considered "pensions," and outlines the Canadian tax implications of each such characterization. It focuses on Canadian-resident employees who participate in, accrue benefits under, or receive distributions from foreign pension plans. After a general discussion of the relevant tax sources, the article presents a case study to illustrate the application of such tax concepts to the case of a current Canadian resident who will be receiving distributions from a variety of UK pension plans in which she participated when she was residing and working in the United Kingdom.