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.
| |
September 22, 1989 |
| VANCOUVER DISTRICT OFFICE |
HEAD OFFICE |
| |
Financial Industries Division |
| Attention: Warren Campbell |
A.B. Adler |
| Section 169-12 |
(613) 957-8962 |
| |
File No. 7-4264 |
Subject: B Corp Instalment Receipts
This is in reply to your round trip memorandum of August 17, 1989 in which you requested our views concerning two questions raised by 19(1) on behalf of the several of his clients who apparently hold B Corp instalment receipts in their respective RRSPs.
For your information we generally de o not provide written opinions to the public with respect to actual and completed transactions. However, it is our view that where B Corp. instalment receipts are listed on a prescribed stock exchange in Canada or on the Toronto futures Exchange such receipts would be qualified investments for an RRSP under paragraph 4900(1)(e) of the Income Tax Regulations. Further, if an RRSP acquires such receipts section 206.1 of the Income Tax Act (the act) could apply to the RRSP in any case where the Instalment receipts specify a fixed price for B Corp shares which may factually differ from the fair market value of such shares at the time of their acquisition. We have previously taken the position that section 206.1 of the Act does not apply where B Corp instalment receipts are acquired by an RRSP.
We trust that our comments are sufficient for your purposes.
for DirectorFinancial Rulings DivisionRulings 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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