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 Peter K. Noack (613)957-8963
February 4, 1988
Dear Sirs:
Your letter of December 22 to our Registered Pension and Deferred Income Plans Division was referred to us for a reply. You ask whether an issuer's offer of attractive rates of interest on loans to make contributions to RRSP's would constitute an advantage as referred to in paragraph 146(2)(c.4) of the Income Tax Act (Act).
Whether or not an advantage that is conditional on the existence of an RRSP is extended to the annuitant depends on all the facts and circumstances of the particular case. An attractive rate of interest on loans to make RRSP contributions may not constitute a benefit to the annuitant depending on the rate of interest offered by the issuer on loans for purposes other than to make RRSP contributions but on similar terms and security. We would consider a rate of interest on loans for RRSP contributions that is more favourable than the rate of interest offered by the issuer on non-RRSP loans on similar terms and security an advantage for the purpose of paragraph 146(2)(c.4) of the Act that would cause the deregistration of the plan.
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