19 August 1997 Internal T.I. 9719556 - SUBSCRIBER, BLOOD RELATIONSHIP

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:

Can a subscriber be a beneficiary of a multiple beneficiary RESP?

Position: No

Reasons:

A subscriber is not connected to himself or herself by blood relationship as required under 146.1(2)(j).

			August 19, 1997

	HEADQUARTERS	HEADQUARTERS
	Registered Plans Division	M.P. Sarazin
	Stella M. Black	(613) 957-8953
	Director
Attention: S. Robidoux
				971955

Blood Relationship and Paragraph 146.1(1)(j)

This is in reply to your memorandum of July 17, 1997, wherein you ask whether a subscriber would be connected to himself or herself by blood relationship for purposes of paragraph 146.1(2)(j) of the Income Tax Act (the "Act").

We agree with your view that a subscriber is not related to himself or herself by blood relationship and, as a consequence thereof, the subscriber may not be a beneficiary under a family plan. Pursuant to paragraph 251(6)(a), persons are connected by blood relationship if one is the child or other descendant of the other or one is the brother or sister of the other. The provision clearly provides that the blood relationship may only exist between two or more persons.

We are of the view that the above interpretation of paragraph 146.1(2)(j) of the Act was intended by the Department of Finance.

for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch