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.
RULINGS DIRECTORATE
CORRESPONDENCE SUMMARY
DOCUMENT TYPE:
Opinion
Principal Issues:
Whether property in two RRSP's owned by two separate individuals (husband and wife) can be used to purchase a joint annuity providing a "retirement income" for each.
Position TAKEN:
No.
Reasons FOR POSITION TAKEN:
Wording of 146(1)(i.1) and (1)(j). See also 921442.
LEGAL:
FINANCE OPINION:
JURISPRUDENCE:
RCT PUBLICATIONS:
HAA NUMBER:
7255-1
XXXXXXXXXX 940130
Attention: XXXXXXXXXX
February 17, 1994
Dear Sirs:
Re: Joint Ownership by Husband and Wife of "Retirement Income" in a
Registered Retirement Savings Plan (RRSP)- Your File XXXXXXXXXX
This is in reply to your letter of January 7, 1994, in which you ask whether a husband and a wife can jointly purchase a single annuity upon maturity of their respective RRSP's, payments from which would constitute "retirement income" within the meaning of paragraph 146(1)(i.1) of the Income Tax Act (the "Act").
The relationship between the annuitant of an RRSP and the issuer of the RRSP as described in paragraph 146(1)(i.1) and in paragraph 146(1)(j) (definition of a "retirement savings plan") is predicated on the existence of only the two parties. In our view, a purchase of a joint annuity by spouses who are the annuitants under separate RRSP's would not satisfy the requirement under paragraph 146(1)(j) of the Act that each plan provide for a retirement income for the individual.
The provisions of the Act in general contemplate an RRSP as one individual's contract or arrangement with one financial institution. For example, the tax consequences on death, on bankruptcy, on emigration or on marriage breakdown, flow from an arrangement under which one annuitant is, immediately prior to the event, the beneficial owner of the RRSP property.
Although the foregoing comments are not binding on the Department, we trust they are helpful.
Yours truly,
for Director
Financial Industries Division
Rulings Directorate
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 1994
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 1994
Email this Content