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.
Principal Issues:
Whether contribution receipts should be issued for gifts to an RRSP.
Position TAKEN:
No.
Reasons FOR POSITION TAKEN:
Receipts are to be issued only for a "premium" as defined in the Act which does not include a "gift".
XXXXXXXXXX 942872
Attention: XXXXXXXXXX
November 17, 1994
Dear Sirs:
Re: Registered Retirement Savings Plans (RRSP's)
Contribution Receipts Issued for Premiums
This is in reply to your letter of November 3, 1994, in which you ask whether contribution receipts must be issued for "gifts" made to an RRSP. You refer to our letter of January 6, 1994 (file 933529), in which we state that the payment by the annuitant of fees for investment counsel advice and services provided to the RRSP would be considered a "gift" within the meaning of subparagraph 204.2(1.2)I(b) of the Income Tax Act (the "Act").
It is clear both from the definition of the word "premium" in subsection 146(1) and from the structure of paragraph 204.2(1.2)I which specifies as separate amounts a "premium" and a "gift", that the term "premium" does not include an amount as a gift. At law a gift is a voluntary transfer of property without consideration; a premium is basically an amount paid in order to obtain a "retirement income" (defined in subsection 146(1) of the Act).
As indicated in Information Circular 72-22R8 (paragraph 36) the issuer should provide a receipt for premiums paid and for certain transfers which are not in issue here. We confirm that no receipt should be issued for a gift.
Although the foregoing comments are an expression of opinion only and are, therefore, not binding on the Department, we trust they are helpful.
Yours truly,
for Director
Financial Industries Division
Rulings Directorate
Policy and Legislation Branch
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