21 June 2007 Roundtable, 2007-0240191C6 - RRSP Registration - SIN requirement

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.

Principal Issues: Requirement that the annuitant's SIN be provided in order to register an RRSP.

Position: See document.

Reasons: See document.

CLHIA ROUNDTABLE - MAY 2007

Question 1

RRSP: Registration where a SIN has not been obtained

Recent administrative experience has confirmed that the CRA requires an annuitant's SIN be provided in order to complete the registration process for an RRSP. This is consistent with subparagraph 22(a)(i) of document IC 72-22R9, which implies that a SIN is required in order to complete the registration process for an RRSP, although there is no such requirement in section 146 of the Income Tax Act (ITA).

This is in clear contrast to the explicit SIN requirement for registration of a RRIF, as provided for in the definition of a RRIF in subsection 146.3(1):

"Registered retirement income fund" means a retirement income fund accepted by the Minister for registration for the purposes of this Act and registered under the Social Insurance Number of the first annuitant under the fund.

Further, there are various transfers allowed under subsection 146(16) and paragraph 60(1)(v) that are available to an RRSP annuitant, or, in specific circumstances, to a spouse or common-law partner or a dependant child or grandchild of an RRSP annuitant. None of these transfers, whether to a resident or non-resident of Canada, refer to the requirement for a SIN.

For a resident of Canada, specific requirements to provide a SIN are included in the following provisions of the ITA:

221(1)(d) allows the creation of regulations imposing the requirement to make information returns

221(1)(d.1) allows the creation of regulations requiring that an individual provide their SIN to a person required to make an information return

237(1) provides that an individual who was resident or employed in Canada and who files a return under Part I of the ITA, or in respect of whom an information return is to be made under a regulation under paragraph 221(1)(d), must apply for a SIN

237(2) provides that a person required to make an information return that requires a SIN must make a reasonable effort to obtain that SIN

162(5)(b) and 162(6) imposes a penalty for the failure to provide a SIN where a SIN is required

While there is a requirement to make a reasonable effort to obtain and to report the SIN of a resident of Canada, none of these provisions apply to the requirements and conditions for registration of an RRSP as outlined in section 146.

For a non-resident of Canada, there is nothing in the ITA that prevents an individual from being the annuitant of an RRSP even if the non-resident individual has never been a resident of Canada. Under Part XIII of the ITA, there is no requirement for a non-resident to obtain and provide a SIN.

Questions:

a) Can the CRA explain the statutory basis for its apparent requirement that the annuitant's SIN be provided in order to register an RRSP?

b) Absent such statutory authority, will the CRA reconsider its position and allow registration of RRSPs where the annuitant's SIN is not provided at the time of registration?

Agency's Response

a) It has always been our position that a SIN is required for registration and reporting purposes. The requirement for a SIN on registration of an RSP is not as clearly specified in the Income Tax Act (the Act) as it is for a RRIF. The registration requirement of a SIN for a RRIF is clearly stipulated in the definition of "registered retirement income fund" under subsection 146.3(1) of the Act. In paragraphs 9(a) and 22(a) of our Information Circular 72-22R9, Registered Retirement Savings Plans, we elaborated our requirement that the annuitant's SIN be required on the application form and on the list of plans being submitted for registration, which is included with the prescribed form T550, Application for Registration of Retirement Savings Plans.

Subsection 237(1.1) of the Act requires that an individual shall provide their SIN when filing a return under the Act. Subsection 237(1) of the Act requires that an individual who was resident or employed in Canada and who files a return under Part I is required to obtain a SIN.

With regards to transfers that are permitted under subsection 146(16), this provision clearly indicates that the property transferred must be made to another RRSP or RRIF to which the individual is the annuitant. Therefore the plan must have been registered prior to allowing funds to be transferred from another RRSP or RRIF. In order for these plans to be registered, a SIN would have been required for registration.

b) We currently have no plans to reconsider our position on the requirement of a SIN when registering an RRSP. You may have specific situations that need to be considered as exceptional cases. We will examine them on a case by case basis. Please note that a non-resident individual situation described in the question does not qualify as an exceptional case.