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:
What is the impact on the Unused RRSP deduction room balance when an individual becomes a non-resident for a period of two years and then resumes residency
Position:
The balance is available when he returns provided that he had no earned income in the intervening period
Reasons:
Based on the legislation
XXXXXXXXXX 960063
Attention: XXXXXXXXXX
February 22, 1996
Dear Sirs:
Re: Unused RRSP Deduction Room
This is in reply to your letter of December 12, 1995, wherein you requested our comments with respect to the definition of "unused RRSP deduction room" in paragraph 146(1) of the Income Tax Act (the "Act") in a situation where an individual resident in Canada ceases to be a resident in 1993 for a period of two years and resumes Canadian residency in the 1995 taxation year. In particular, you enquire as to whether the unused RRSP deduction room balance at the end of the 1992 taxation year will be available when calculating the unused RRSP deduction room for the individual's 1995 taxation year. You advise that the individual did not make any RRSP contributions in 1993.
We confirm that the opening balance of the unused RRSP deduction room for the individual's 1995 taxation year will be the balance available at the end of his 1992 taxation year, provided that the individual had no earned income for the 1993 and 1994 taxation years. Further, we confirm that the two years that the individual was a non-resident will be included in determining the carryforward period for purposes of this definition.
We trust our comments will be of assistance to you.
Yours truly,
for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 1996
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 1996
Email this Content