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 a RRIF trust acquire Canada Savings Bonds or Ontario Provincial Savings Bonds?
Position: Yes.
Reasons: These are qualified investments?
XXXXXXXXXX 2001-007434
M. P. Sarazin, C.A.
April 4, 2001
Dear XXXXXXXXXX:
Re: RRIF and Canada Savings Bonds and Ontario Savings Bonds
This is in reply to your undated letter, which was forwarded to us by the Registered Plans Directorate of the Canada Customs and Revenue Agency, requesting our views as to whether a registered retirement income fund ("RRIF") could acquire Canada Savings Bonds or Ontario Provincial Savings Bonds.
A qualified investment for a RRIF, as defined in subsection 146.3(1) of the Income Tax Act (the "Act"), includes an investment described in paragraph (b) of the definition of "qualified investment" in section 204 of the Act where the investment is held by a trust governed by a RRIF. Under paragraph (b) of the definition of "qualified investment" in section 204, bonds, debentures, notes, mortgages or similar obligations described in clause 212(1)(b)(ii)(C) of the Act are qualified investments. Clause 212(1)(b)(ii)(C) of the Act includes bonds, debentures, notes, mortgages or similar obligations
(I) of or guaranteed by the Government of Canada, and
(II) of the government of a province or an agent thereof.
Since Canada Savings Bonds are bonds of the Government of Canada and Ontario Provincial Savings Bonds are bonds of the Government of Ontario, these bonds are qualified investments for a trust governed by a RRIF.
Since the qualified investments for a registered retirement savings plan are very similar to the qualified investments for a RRIF, we have enclosed a copy of Interpretation Bulletin IT-320R2 titled "Registered retirement savings plans - Qualified investments". The investments that you described are discussed in 3(a) of IT-320R2.
We trust that the above comments will be of assistance to you.
Yours truly,
Roberta Albert, C.A.
for Director
Financial Industries Division
Income Tax Rulings Directorate
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