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.
Is a debenture issued by a church a qualified investment for an RRSP?
Reasons FOR POSITION TAKEN:
5-7346 and the Act.
XXXXXXXXXX L. Roy
June 15, 1994
RE: Qualified Investments for Registered
Retirement Saving Plan ("RRSP")
This is in reply to your letter of April 24, 1994 wherein you requested our comments as to whether a debenture issued by your church would be qualified investment for a trust governed by a RRSP.
All references to statute are to the Income Tax Act S.C. 1970-71-72, c.63, as amended, consolidated to June 10, 1993 (the "Act").
Written confirmation of the tax implications inherent in particular transactions are given by this Directorate only where the transactions are proposed and are the subject matter of an advance ruling request submitted in the manner set out in Information Circular 70-6R2, dated September 28, 1990. Where the particular transactions are completed, the enquiry should be addressed to the relevant district taxation office. The following comments are, therefore, of a general nature only, and are not binding on the Department.
Qualified investments of a trust governed by an RRSP are listed in paragraphs 146(1)(g) and 204(e) of the Act and section 4900 of the Income Tax Regulations (the "Regulations).
Although debentures issued by various entities qualify as qualified investments under subparagraphs 146(1)(g)(ii) and 204(e)(ii) of the Act and paragraphs 4900 (1)(g), (h) and (i) of the Regulations, debentures issued by a church are not included in any of the above-mentioned paragraphs.
Enclosed is a copy of Interpretation Bulletin IT-320R2 which describes the kinds of property that constitute qualified and non-qualified investments for an RRSP.
We trust the above comments will be of assistance to you.
Financial Industries Division
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