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.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department. Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Subject: RRSP INCENTIVE Section(s): 146(2)(c.4)]
- 5- 920451 P. Spice (613) 957-8953
XXX
February 20, 1992
Dear Sirs:
Re: RRSP Incentive
We are writing in reply to your letter of November 28, 1991, which was forwarded to us by the Registered plans Division. You asked whether offering a one-time $50 credit to participants of a group RSP would be acceptable under paragraph 146(2)(c.4) of the Income Tax Act (the "Act").
The Department's position is that paragraph 146(2)(c.4) of the Act prevents the registration of a plan which extends to an annuitant an advantage such as bonus interest, gifts, or other rights, things or properties of value. Advantages which remain in the plan are not considered to be granted to the annuitant and therefore do not contravene the provision. Issuers are subject to the penalty contained in subsection 146(13.1) if they offer such advantages to the annuitant or to a person who does not deal at arm's length with the annuitant.
Although these comments are not binding we trust they are helpful.
Yours truly,
for Director
Financial Industries Division
Rulings Directorate
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© Her Majesty the Queen in Right of Canada, 1992
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© Sa Majesté la Reine du Chef du Canada, 1992
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