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Uncle Sam’s Christmas Gift to RRSP and RRIF Owners
The IRS is keeping its promise to alleviate severe reporting requirements and potential penalties for about 750,000 US citizens and resident aliens who have a Canadian RRSP or RRIF. Effective for the 2003 tax year, IRS Notice 2003-75 provides simplified interim procedures that will greatly reduce RRSP and RRIF owners’ reporting obligations.
Accounting Disclosure Rules Finalized
In a Decision Summary dated December 3-4, 2003, the Canadian Accounting Standards Board (AcSB) has finalized changes to the disclosure requirements for Employee Future Benefits under CICA 3461. Some changes were made to the original October 2003 Exposure Draft proposals in response to comments received, and the implementation date has been deferred to mid-2004.
Pension Plans: News of Their Demise is Unwarranted
Recent newspaper articles have reported on an opinion from another leading consulting firm regarding the current state of corporate pension plans in Canada. The message conveyed is that defined benefit plans are no longer feasible and that it is time to hit the "escape" button. Watson Wyatt acknowledges that the current pension plan situation is not simple, but also considers that successful organizations cannot afford to simply throw in the towel. Indeed, plan sponsors need to ensure they are doing all that can be done to efficiently manage their plans.
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