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 immediate income tax consequences when a broker rebates to an RRSP investor of a percentage of its commission on the deferred sales charges in respect of mutual fund units purchased by the RRSP?
Position: No.
Reasons: Consistent with prior positions. The reimbursement is a transaction between the RRSP investor and the broker and has no impact on the annuitant of the RRSP.
XXXXXXXXXX 990741
G. Kauppinen
Attention: XXXXXXXXXX
October 6, 1999
Dear Sirs:
Re: Advantage Extended to Annuitant of RRSP
This is in reply to your letter dated March 8, 1999 wherein you requested our opinion on the potential for immediate income tax consequences if a broker reimburses to an investor, which is an RRSP, a percentage of its commission with respect to the deferred sales charge on mutual fund units at the time the units are purchased. The reimbursed amount is used to purchase additional units of the same mutual fund.
It is our opinion that the reimbursement to the RRSP described above will not be considered a benefit taxable to the annuitant of the RRSP nor will it be considered an advantage extended to the annuitant of the RRSP in contravention of the rules for registration of an RRSP.
We trust the foregoing comments are of assistance.
Yours truly,
Patricia Spice
for Director
Financial Industries Division
Income Tax Rulings
and Interpretations Directorate
Policy and Legislation Branch
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