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.
RULINGS DIRECTORATE CORRESPONDENCE SUMMARY
PRINCIPAL ISSUES:
Proper method to be used to close out RCA refundable tax account.
POSITION TAKEN:
Apply 207.5(2)
REASONS FOR POSITION TAKEN:
Methods proposed in submission not necessary since legislation provides solution.
LEGAL:
FINANCE OPINION:
JURISPRUDENCE:
RCT PUBLICATIONS:
HAA NUMBER:
7200-9
XXXXXXXXXX
Attention: XXXXXXXXXX
Dear Sirs:
RE: Retirement Compensation Arrangements (RCA's)
This is in reply to your letter of December 15, 1993, in which you ask whether the steps you describe to obtain a refund of all of an RCA's refundable tax would be acceptable.
In our view, the proper method to obtain the balance of an RCA's refundable tax is to elect under subsection 207.5(2) of the Income Tax Act in the year the final distribution of property is made from the RCA. The election is discussed at page 9 of the Retirement Compensation Arrangement Guide.
Although these comments are not binding on the Department, we trust they are helpful.
Yours truly,
for DirectorFinancial Industries DivisionRulings Directorate
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