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 transfer of property from RRSP to RRIF occurs at cost or fmv.
Position TAKEN:
Transfer at fmv.
Reasons FOR POSITION TAKEN:
Routine
XXXXXXXXXX 951881
Attention: XXXXXXXXXX
September 20, 1995
Re: Transfer from Registered Retirement Savings Plan (RRSP)
This is in reply to your letter of July 13, 1995, in which you ask us to confirm the value at which property in an unmatured RRSP is transferred to a registered retirement income fund (RRIF). Your question concerns the foreign property investment limits.
This will serve to confirm that all transfers of property between registered plans are recorded at fair market value except where the situation is as described in paragraph 12 of Interpretation Bulletin IT-412R2 ("Foreign Property of Registered Plans"). It will, therefore, be necessary for the recipient plan to dispose of excess foreign property before the end of the calendar month in which the property is received, or be subject to the tax as set out in subsection 206(2) of the Income Tax Act.
We trust this is the information you require.
Yours truly,
for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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