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 properties qualify to be held by an RRSP?
Position: IT-320R2 answers this question
Reasons: No facts, difficult to provide more specific comments
XXXXXXXXXX 980294
M. P. Sarazin
Attention: XXXXXXXXXX
April 23, 1998
Dear Sirs:
Re: Qualified Investments for a Registered Retirement Savings Plan (“RRSP”)
This is in reply to your letter dated January 5, 1998, wherein you requested information on how to determine whether investments in two projects that your company is involved in would be qualified investments for an RRSP. You also ask whether there are regulations and registry requirements in setting-up an RRSP eligible operation.
Written confirmation of the tax implications inherent in proposed transactions are given by this Directorate only where the transactions are the subject of an advance income tax ruling request submitted in the manner set out in Information Circular 70-6R3. A copy of this publication is available from your local tax services office.
While we are unable to provide you with written confirmation regarding the specific projects that your company is involved in, we are able to provide you with the following general comments which may or may not be applicable to the circumstances of your particular situations.
The kinds of property that constitute qualified investments for an RRSP are described in subsection 146(1) of the Income Tax Act (the “Act”) and section 4900 of the Income Tax Regulations (the “Regulations”). The enclosed Interpretation Bulletin IT-320R2 titled “Registered Retirement Savings Plans - Qualified Investments” deals with the kinds of property that constitute qualified and non-qualified investments for an RRSP and it also discusses the income tax consequences of an RRSP acquiring and holding non-qualified investments. Without any details on the form of the investments, we are unable to provide general comments in respect of the specific forms. However, we note that the Act and Regulations places restrictions on which investments in foreign countries will qualify and it also limits the amount that a particular RRSP may invest in a qualified investment that constitutes foreign property.
We trust that the above comments will be of assistance to you.
Yours truly,
Paul Lynch
for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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