12 June 1997 External T.I. 9708145 - HOME BUYERS' PLAN 90 DAYS RRSP PREMIUM

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:

Since the application of subparagraph 146(5)(a)(iv.1) is applied on a plan by plan basis, where a transfer of funds between plans occurs, will the 90 day delay be avoided?

Position: No

Reasons:

Subparagraph 146(5)(a)(iv.1) prohibits a deduction for a premium considered to be withdrawn as an eligible amount within 90 days.

                                	5-970814
XXXXXXXXXX		                          Franklyn S. Gillman

Attention: XXXXXXXXXX

June 12, 1997

Dear Sirs:

Re: Home Buyers' Plan

This is in reply to your letter dated March 24, 1997 wherein you requested clarification whether the rule restricting the deduction of registered retirement savings plan ("RRSP") contributions withdrawn before 90 days under the Home Buyers' Plan (subparagraph 146(5)(a)(iv.1) of the Act) be applied on a plan by plan basis or across all plans of the taxpayer.

The determination under subparagraph 146(5)(a)(iv.1) of the Act as to whether or not a contribution to an RRSP is deductible is applied on a plan by plan basis. However, in determining whether the 90 day delay criteria is met under subparagraph 146(5)(a)(iv.1) of the Act when dealing with funds which are transferred between plans, the Department takes the position that the date of the contribution by the taxpayer to the initial RRSP will be the relevant date to begin the calculation of the said delay.

We trust these comments will be of assistance.

Yours truly,

for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate