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
Gord Dixon (613) 995-2455
June 28, 1983
Dear Sirs:
This is in reply to your letter of June 15, 1983 requesting our views with respect to a non-interest bearing loan from a RRSP trust to the annuitant. You have suggested that paragraph 146(2)(c.4) should not operate to de-register the RRSP because the only precondition is that funds are available for the loss. The existence of the RRSP is therefore not a precondition.
We are generally of the view that if an advantage is extended to an annuitant under a RRSP, such an advantage must fall within those benefits contained in subparagraphs 146(2)(c.4)(i) through (iv). It would appear from your general description of the situation that the interest-free loan is an advantage not contemplated by the aforementioned subparagraphs. We are also of the general view that where the annuitant receives a loan which is free from interest from a RRSP, such a loan is entered into as a consequence of the existence of the plan and is therefore the situation contemplated by paragraph 146(2)(c.4). Consequently, subsection 146(13.1) would cause an already registered plan to be deemed to be an amended plan under subsection 146(12).
We trust our comments will be of assistance.
Yours truly,
for Director Non-Corporate Rulings Division
GD:ta 146(2 146(5)
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