Pension income exempt

[Gigahoo]

Does the 'Portion of eligible foreign pension income exempt under a tax treaty' entry the Pension Income Credit section refer to taxes that are exempt from Canadian taxes, or the opposite?   I think whether the exemption is in Canada or foreign, on the face of it, is entirely ambiguous.

I am aware that there is no exempt amount for UK Pensions received in Canada.  But there is a tax treaty and therefore the amount is exempt in the UK.  Therefore the common sense interpretation (exempt under a tax treaty) would be to enter the UK pension in this section, which is what I did.  Was I correct to do so?

[TurboTaxTerry · Accepted solution]

The reference refers to pension income exempt in Canada only. You would report all of your pension as taxable in Canada. (Report in CDN dollars or use the annual conversion rate from the Bank of Canada).

[TonyC11]

As stated by Terry, UK Pensions are exempt from tax in the UK but are fully taxable by CRA.
You should report UK pensions as other pension Incone under foreign income.

The reference in Turbotax is to exemption in Canada.
As another case, pensions from India are taxable in India, but fully exempt in Canada.
( therefore completely reversed from the Canada UK treaty.)

[Gigahoo]

Hopefully Turbotax will clean up the text of their instructions for the sake of those unfamiliar with the context.