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
July 15, 1983
Dear Sirs:
This is in reply to your letter of July 5, 1983 requesting our views with respect to paragraph 146(2)(c.4) of the Income Tax Act and a loan made by the RRSP to the annuitant at commercial interest rates available in the market place.
In order to determine whether an advantage has been conferred, the relevant documents would have to be referenced. Accordingly, we are not in a position to offer our views with respect to the applicability of paragraph 146(2)(c.4) of the Act to the situation. We note, however, that subsection 146(13) causes a plan to be tested for registration. If payment of any amount by way of a loan or otherwise is made on the security of a right under the RRSP, and that right is, for example, a benefit within paragraph 146(1)(b) of the Act, then the plan may be deemed by subsection 146(12) to be a new plan which provides for a benefit before the date of maturity of the plan. Consequently, the plan would, in effect, be deregistered by paragraph 146(12)(a) of the Act for failure to satisfy subparagraph 146(2)(a)(i).
We trust our comments will be of assistance.
Yours truly,
for Director Non-Corporate Rulings Division
GD:ta 146(13) 146(2)
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