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:
Are certain deposits qualified investments for an rrsp?
Position TAKEN:
No position on specific deposits provided. Gave routine information
Reasons FOR POSITION:
This is a factual proposal. It is also not clear what the proposal is about. This seems like one step in a multi step function. It may, for example, be that these deposits are a form of margin account.
XXXXXXXXXX 5-964045
Attention: XXXXXXXXXX
January 21, 1997
Dear Sirs:
Re: Qualified Investments for an RRSP
This is in reply to your facsimile received December 6, 1996, concerning the above-noted topic.
From the information provided in your letter it appears your enquiry relates to a specific factual situation. Written confirmations 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 70-6R3, dated December 30, 1996. Accordingly, we can not address the specific situation detailed in your letter at this time. We can however provide you with the following general comments which may be of assistance to you.
As stated in paragraph 1 of the Department's Interpretation Bulletin IT-320R2 Registered Retirement Savings Plans - Qualified Investments (enclosed), all investments of an RRSP must be registered in the name of the trustee of the RRSP. Accordingly a deposit in the name of a third party would not be a qualified investment for an RRSP. Furthermore, if a deposit is held by a third party in trust for the RRSP it would generally not be a qualified investment for an RRSP. In general the only interests in trusts that may be held by an RRSP are interests in registered investments as provided in paragraph 4900(1)(a), interests in mutual funds as provided in paragraph 4900(1)d), and interests in small business investment limited trusts as provided by 4900(6) of the Income Tax Regulations.
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
ENC.
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