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 there any restrictions on benefits that may be given by financial institutions with respect to the sale of RESPs other than those contained within certain of the provisions of 4900?
Position:
No, but the proposals are presently only in draft form and are subject to change by the Department of Finance
Reasons:
Reading of October 1998 Finance release.
XXXXXXXXXX 982833
W. C. Harding
Attention: XXXXXXXXXX
January 25, 1999
Dear Sirs:
Re: Qualified Investments for Registered Education Savings Plans (RESPs)
This is in reply to your letter of October 30, 1998, in respect of the draft legislation related to qualified investments for RESPs.
We can confirm that no provisions similar to paragraph 146(2)(c.4) or subsection 146(13.1) of the Income Tax Act have been proposed with respect to RESPs and that no provisions have been proposed which would limit the foreign content of a trust governed by an RESP.
We can also confirm that the proposed amendments of paragraphs 4900(1)(g) and (h) of the Income Tax Regulations will allow their application to RESPs, but will otherwise continue to provide that the investments specified in the provisions will not be qualified investments for a registered plan if they are provided by a credit union or co-operative, as the case may be, and a benefit or privilege is extended by that credit union or co-operative to any person as described in the provisions.
This draft legislation was released by the Department of Finance on October 27, 1998 for the purpose of soliciting public commentary before its introduction to Parliament. Should you feel the provisions are unfair to a specific financial sector we suggest that it would be appropriate for you to submit details of your concerns to the Department of Finance for their consideration.
We trust this information will be satisfactory.
Yours truly,
Paul Lynch
for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
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