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: Will the payment of investment counsel fees by an "insured RRSP" constitute a taxable benefit to the annuitant of the RRSP (146(8))?
Position: No.
Reasons: Consistent with our current position regarding other types of RRSPs.
2000-002612
XXXXXXXXXX G. Kauppinen
(613) 957-8971
Attention: XXXXXXXXXX
August 22, 2000
Dear Sirs:
Re: Investment Counsel Fees Paid by a Registered Retirement Savings Plan ("RRSP")
This is in reply to your facsimile transmission dated May 15, 2000 regarding investment counsel fees paid out of an "insured RRSP". You have indicated that an "insured RRSP" is in the form of an annuity contract that permits investments in interests of various segregated funds and described in paragraph (a) of the definition of "retirement savings plan" in subsection 146(1) of the Income Tax Act (the "Act").
This is to confirm our position that the payment of the investment counsel fees by the RRSP will not constitute a benefit to the annuitant of the RRSP and no income inclusion under 146(8) of the Act will be required by the annuitant.
Please note that we not distinguish between "insured RRSPs" and other types of RRSPs in this regard.
We trust our comments will be of assistance to you.
Yours truly,
for Director
Financial Industries Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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