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.
XXXX
R. Nanner (613)957-3494 January 8, 1988
Dear Sirs:
This is in repsonse to your letter of December 7, 1987 wherein you enquired about the income tax implications of a Trustee in Bankruptcy (the "Trustee") taking over a self-administered registered retirement savings plan ("RRSP").
Our position, as stated in paragraphs 13 and 14 of Interpretation Bulletin IT-415R , is that the Trustee steps into the shoes of the bankrupt (the annuitant) and acquires what the bankrupt had on the date of the bankruptcy. If the Trustee decides to cash-in the RRSP then the trustee of the RRSP must withhold income tax pursuant to subsection 153(1) of the Income Tax Act and Regulations related thereto.
With respect to your other question as to the position of "requirement to-pay" by Revenue Canada vis-a-vis other creditors of the annuitant, we suggest that you look to the laws on bankruptcy in your province.
Yours truly,
for Director Financial Industries Division Rulings Directorate
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 1988
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 1988
Email this Content