Principal Issues: Whether the CRA's comments in the technical interpretation 2002-0141355 are still valid?
Position: Yes, except our comments related to the S.I.N. requirement for a non-resident in order to be the annuitant of a RRSP and our comments related to the application of subparagraphs 212(1)(l)(i) and (ii) and 212(1)(q)(i) and (ii). A non-resident annuitant must provide a S.I.N. to the issuer of a RRSP who is required to prepare an information return pursuant to the subsection 214.1(1) of the Income Tax Regulations. If the surviving spouse is named as the beneficiary of the deceased's estate, the exceptions in paragraphs 212(1)(l) and 212(1)(q) are generally not satisfied and the payment out of the RRSP is subject to Part XIII withholding. However, when the legal representative and the spouse, as beneficiary of the estate, jointly direct that the amount that would otherwise be paid to the estate be transferred by the payer directly to a RRSP, a RRIF or a qualified annuity under which the surviving spouse is the annuitant, the CRA will generally accept that such amount be exempt from Part XIII withholding, provided that the requirements of subparagraphs 212(1)(l)(i) and (ii) or 212(1)(q)(i) and (ii), as the case may be, are satisfied.
Reasons: Application of the Act, the Income Tax Regulations and previous interpretations.