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.
March 16, 1983
Registration Division Mr. E.A. Chater, Director
Non-Corporate Rulings Division B. Toyota
RRSPs for Minors
We are attaching a letter from XXXX dated March 2, 1983 for your reply since their inquiry involves the registration of RSPs for minors.
Generally speaking, there does not appear to be any provision in the Act which would effectively discourage taxpayers from entering into such arrangements. The provisions of section 204.1 would only apply on an excess amount as defined in subsection 204.2(1) so that contributions which are limited to $5,500 for a year are not subject to that tax. In addition, we doubt if subsection 75(1) could be applied in view of our comments in paragraph 10 of IT-260R . Accordingly, the only effective means would appear to be your continued refusal to accept such plans for registration purposes.
In reply to the last paragraph of their letter, it is our view that subsection 146(8.8) would apply to tax the RRSP annuitant on the fair market value of all the property of the plan immediately before his death, subject to subsection 146(8.9), assuming the minor is a child or grandchild of the annuitant.
We would appreciate receiving a copy of your reply for our records.
for Director Non-Corporate Rulings Division
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© Sa Majesté la Reine du Chef du Canada, 1983
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