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.
| 19(1) |
File No. 5-8128 |
| |
Maureen Shea-DesRosierss |
| |
(613) 957-8953 |
June 8, 1989
Dear Sirs:
Re: 10% Foreign Investment Rules for Self-Directed Registered Retirement Savings Plans
This is in reply to your letter of May 16, 1989 wherein you request clarification of the 10% foreign investment rules for Self-Directed Registered Retirement Savings Plan ("RRSP").
Where an RRSP holds an interest in a "registered investment" as defined in Part X.2 of the Income Tax Act (the Act), regardless of the type of property held by the registered investment, the interest will not be foreign property to the RRSP. The registered investment is itself subject to foreign property tax.
Where an RRSP holds an interest in a mutual fund trust that is not a registered investment, it will not be a foreign property for purposes of computing the tax payable by the RRSP under Part XI of the Income Tax Act (the "act") in respect of any particular month if the mutual fund trust has not acquired any foreign property after June 30, 1971 or at no time during the relevant period for the particular month did the cost to the trust of all foreign property held by it exceed 10% of the cost to it of all property held by it.
We trust the above comments will be of assistance to you.
Yours truly,
for Director Financial Industries Division Rulings Directorate
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© Her Majesty the Queen in Right of Canada, 1989
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© Sa Majesté la Reine du Chef du Canada, 1989
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