11 August 1999 External T.I. 9921865 - MINIMUM AMOUNT, AGE IN WHOLE YEARS

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: Does the age at the beginning of the year for purposes of the minimum amount in subsection 146.3(1) mean the age in whole years at the end of the previous year?

Position: Yes.

Reasons: All individuals born in the same calendar year should use the same number for purposes of computing the minimum amount.

XXXXXXXXXX							992186
M. P. Sarazin

Attention: XXXXXXXXXX

August 11, 1999

Dear Sirs:

Re: Minimum Amount for a Registered Retirement Income Fund ("RRIF")

This is in reply to your letter dated July 27, 1999, wherein you requested clarification as to whether the reference to the expression "the number that is or would be, the age in whole years of the annuitant at the beginning of the year" with regard to the determination of the minimum amount for purposes of a RRIF. You have noted that our recent interpretation (file #990430) wherein we stated the age at the beginning of the year is the individual's age on December 31 of the preceding year contradicts an earlier interpretation wherein you were advised that the individual's age on January 1 was the relevant age for determining the minimum amount. The impact of this difference in interpretation, of course, is restricted to individuals born on January 1.

Comments

We are of the view that the most recent interpretation is the correct interpretation because taxpayers born in the same calendar year would have to use the same factor in computing the minimum amount for a RRIF.

The enclosed Information Circular 70-6R3 titled Advance Income Tax Rulings provides general information with respect to the Income Tax Rulings and Interpretations Directorate's responsibilities. As noted in paragraph 22 of IC 70-6R3, the Income Tax Rulings and Interpretations Directorate also provides, in writing, technical interpretations of specific provisions of income tax law.

We trust the above comments will be of assistance to you.

Yours truly,

Patricia Spice
for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate