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:
T4RSP contents- gross or net amount after deduction for redemption fees on redemption of mutual funds
Position TAKEN:
Net amount
Reasons FOR POSITION TAKEN:
Routine
5-951695
XXXXXXXXXX M.P. Baldwin
Attention: XXXXXXXXXX
July 4, 1995
Dear Sirs:
Re: Mutual Fund T4RSP Reporting
This is in reply to your facsimile of June 27, 1995 in which you ask whether you should show the gross amount on a T4RSP of the value of mutual fund units in a registered retirement savings plan ("RRSP"), or the net amount after reduction for redemption charges, upon the redemption of those units and pay out to an annuitant.
In our view the costs associated with redeeming mutual fund units in an RRSP trust are expenses of the trust and are properly paid for with trust funds. In accordance with the commentary for boxes 16 to 34 in Chapter 9 of the 1994 T4RSP and T4RIF Guide, the net amount of the payment (the amount before tax but reduced by the expenses of the trust) should be reported on the T4RSP.
We trust this information is helpful. Please note that your local tax services office is able to assist you if you have any questions concerning the completion of information slips.
Yours truly,
for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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© Her Majesty the Queen in Right of Canada, 1995
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© Sa Majesté la Reine du Chef du Canada, 1995
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