Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
XXXX G.D. Middleton (613) 995-0051
January 22, 1986
Dear Sirs:
This is in reply to your letter of July 29, 1985 concerning advantages conferred on annuitants of registered retirement savings plans ("RRSP's") for the purposes of paragraph 146(2)(c.4) of the Income Tax Act (the "Act"). We apologize for the delay in our reply.
It is a question of fact whether an advantage has been conferred on the RRSP annuitants described in your letter and this could only be determined after an examination of all relevant documents, circumstances and facts.
Since we do not have all the relevant information to make a determination, we can only offer the following general comments:
If all of the terms and conditions in respect of the proposed mortgages (i.e. amount of principal, interest rate, term to maturity, repayment amounts, collateral, insurance, etc.) reflect market conditions and commercial reality, we would not consider an advantage to be conferred on the RRSP annuitants for the purposes of paragraph 146(2)(c.4) of the Act.
We trust our comments will be of assistance to you.
Yours truly,
for Director Financial Industries Division Rulings Directorate
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© Her Majesty the Queen in Right of Canada, 1986
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© Sa Majesté la Reine du Chef du Canada, 1986
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