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.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues: Can an individual with RRSP contribution room who becomes a non-resident contribute to his or her RRSP or to a spousal RRSP after becoming a non-resident?
Position: Yes.
Reasons: There is nothing in the Act to prevent a non-resident from contributing to his or her RRSP.
XXXXXXXXXX 2000-000846
M. P. Sarazin
April 6, 2000
Dear Sir:
Re: Contributions to a Registered Retirement Savings Plan ("RRSP")
This is in response to your undated letter faxed to us February 17, 2000, wherein you requested confirmation that a non-resident of Canada can contribute to his or her RRSP or a spousal RRSP when the individual has an RRSP deduction limit, within the meaning assigned by subsection 146(1) of the Income Tax Act (Canada) (the "Act").
In your letter you have outlined what is an actual fact situation related to proposed transactions. As noted in Information Circular 70-6R3 (available at your local tax services office or on the internet at www.ccra-adrc.gc.ca/formspubs/menu-e.html), this directorate can only provide an opinion concerning the tax consequences associated with specific proposed transactions in the form of an advance income tax ruling. Consequently, we can only provide you with the following general comments.
The Canada Customs and Revenue Agency's general views regarding contributions to RRSPs are found in Interpretation Bulletin IT-124R6 which is also available at the above noted internet site. IT-124R6 discusses amounts that may be contributed to RRSPs, the deductibility of amounts contributed to RRSPs and the application of the penalty provisions under Part X.1 of the Act in respect of any overcontributions to RRSPs. We note that all references in IT-124R6 are to a taxpayer that is an annuitant under the particular RRSP. A taxpayer is defined in subsection 248(1) of the Act to include any person whether or not liable for tax in Canada. Consequently, there is nothing in the Act to prevent a non-resident individual, whether the individual has an RRSP deduction limit or not, from contributing to his or her RRSP or to a spousal RRSP. However, overcontributions will be subject to tax under Part X.1 where overcontribution limits are exceeded.
We trust these comments will be of assistance.
Yours truly,
P. Spice
for Director
Financial Industries Division
Income Tax Rulings Directorate
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