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 CCRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ADRC.
Principal Issues: Is a public corporation (not a mortgage investment corporation) that is no longer listed on a prescribed stock exchange in Canada still a qualified investment for an RRSP?
Position: Yes.
Reasons: Since the company is still a public corporation it will continue to be a qualified investment (Paragraph 4900(1)(b))(paragraph (c) of the definition of "public corporation" in subsection 89(1))
XXXXXXXXXX 2001-011209
G. Kauppinen
November 28, 2001
Dear XXXXXXXXXX:
Re: Registered Retirement Savings Plans ("RRSP")
Your facsimile transmission dated November 20, 2001 to XXXXXXXXXX regarding qualified investments for RRSPs has been forwarded to us for reply.
You ask if a public corporation which is no longer listed on a prescribed stock exchange will lose its status as a qualified investment for a Registered Retirement Savings Plan ("RRSP").
Opinions concerning proposed transactions involving specific taxpayers will only be provided in response to a request for an advance income tax ruling. For more information concerning advance tax rulings, please refer to Information Circular 70-6R4 dated January 29, 2001, issued by the Canada Customs and Revenue Agency. Copies of information circulars and interpretation bulletins are available from your local tax services office or on the Internet at the following site - http://www.ccra-adrc.gc.ca/formspubs/menu-e.html.
The situation described in your request appears to be an actual situation. Requests for opinions regarding completed transactions, as in your case, should be directed to your local Tax Services Office as they are responsible for resolving questions of fact. However, we can provide you with the following general comments.
Notwithstanding that a corporation is no longer listed on a prescribed stock exchange, it is sufficient that it retains its status as a public corporation (other than a mortgage investment corporation) in order for its shares to continue to be a qualified investment for an RRSP. Any corporation that was a public corporation after June 18, 1971, because it was resident in Canada and its shares were listed on a prescribed stock exchange in Canada, will continue to be a public corporation even if its shares cease to be so listed, as long as the corporation continues to be resident in Canada.
We refer you to paragraph 3(e) of Interpretation Bulletin IT-320R2 entitled "Registered Retirement Savings Plans - Qualified Investments" and paragraph 2(d) of Interpretation Bulletin IT-391R entitled Status of Corporations (copies enclosed).
We trust our comments will be of assistance to you.
Yours truly,
Roberta Albert, CA
for Director
Financial Industries Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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