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:
Are units of a specific limited partnership a qualified investment for an RRSP?
Position: Question of fact but probably not.
Reasons:
In order to qualify as a qualified investment, the units of the specific limited partnership would have to trade on a prescribed Canadian stock exchange.
XXXXXXXXXX 2002-017902
March 4, 2003
Dear XXXXXXXXXX:
Re: Qualified Investment for Registered Retirement Savings Plans ("RRSPs")
This is in response to your letter of November 27, 2002, which was forwarded to us by the Registered Plans Division on December 13, 2002, wherein you requested our views as to whether the units of XXXXXXXXXX (the "Limited Partnership") would be a qualified investment within the meaning assigned by subsection 146(1) of the Income Tax Act.
This Directorate will only issue an advance income tax ruling where the request relates to a specific proposed transaction and the request is submitted in accordance with the provisions of Information Circular 70-6R5. Accordingly, since you are requesting general information on a specific investment (i.e. units of the Limited Partnership) that might be held in an RRSP, we cannot provide a ruling. However, we can provide the following general information which may be of assistance to you.
The Canada Customs and Revenue Agency's general views regarding qualified investments for RRSPs are found in Interpretation Bulletin IT-320R3 entitled Qualified Investments - Trusts Governed by Registered Retirement Savings Plans, Registered Education Savings Plans and Registered Retirement Income Funds. Paragraph 26 of IT-320R3 deals specifically with partnership units. We note that a limited partnership unit that is listed on a prescribed stock exchange in Canada is a qualified investment.
Information Circulars and Interpretation Bulletins are available at your local tax services office or on the internet at www.ccra-adrc.gc.ca under the heading of Forms and Publications.
We hope these comments will be of assistance to you.
Yours truly,
Mickey Sarazin, CA
for Director
Financial Industries Division
Income Tax Rulings Directorate
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