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:
Request for copy of our position on foreign currency in RRSP or RRIF (see 920940).
Position TAKEN:
Routine reply.
Reasons FOR POSITION TAKEN:
LEGAL:
FINANCE OPINION:
JURISPRUDENCE:
RCT PUBLICATIONS:
HAA NUMBER:
7255-7
XXXXXXXXXX 940559
March 11, 1994
Dear XXXXXXXXXX:
This is in reply to your letter of February 28, 1994, in which you ask us for a copy of the Department's letter dealing with the holding of foreign currency in a registered retirement savings plan (RRSP) or registered retirement income fund (RRIF).
Copies of opinion letters issued by this directorate are available through the Department's Access to Information and Privacy Division. The form and instructions concerning this procedure can be obtained from your local district taxation office.
We are able to offer you the following general comments concerning the subject matter you have raised.
Various securities denominated in a foreign currency are qualified investments for a trust governed by an RRSP or RRIF; however, foreign currency itself is not a qualified investment. Since dividends and interest on such securities are often paid in foreign currency and the purchase and sale of these securities are also transacted in foreign currency, the trust may receive or be required to hold foreign currency to participate in these transactions.
In such situations, provided that the foreign currency is converted to an otherwise qualified investment within a reasonable time (for example, one month), the Department would not consider the trust to have acquired a non-qualified investment.
We trust this letter satisfactorily explains our position on this matter.
Yours truly,
for Director
Financial Industries Division
Rulings Directorate
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© Her Majesty the Queen in Right of Canada, 1994
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© Sa Majesté la Reine du Chef du Canada, 1994
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