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.
D.S. Delorey (613) 957-3495
24(1)
Attention: 19(1)
June 26, 1990
Dear Madam:
This is in reply to your letter of June 5, 1990 concerning paragraph 146.3(2)(g) of the Income Tax Act (the "Act").
We note that your enquiry concerns a proposed transaction. As explained in paragraph 23 of Information Circular 70-6R, the Department does not provide written opinions on proposed transactions other than in reply to advance ruling requests submitted in the manner set out in that Circular. We offer however the following general comments.
Generally speaking, it is our view that where the benefit in question is extended to a trust governed by a registered retirement income fund ("RRIF"), the extension of the benefit to the RRIF trust will not contravene the condition for acceptance for registration in paragraph 146.3(2)(g) of the Act.
Thus, where an RRIF trust acquires units in a mutual fund and the sales charge normally applicable on early redemption is reduced or cancelled, the condition in paragraph 146.3(2)(g) of the Act would normally not be contravened solely as a result of such reduction or cancellation.
The above comments reflect an expression of opinion only and are not binding on the Department, as explained in paragraph 24 of Information Circular 70-6R. We trust however, that they are of assistance to you.
Yours truly,
W. Douglas for Director Financial Industries Division Rulings Directorate
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© Her Majesty the Queen in Right of Canada, 1990
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© Sa Majesté la Reine du Chef du Canada, 1990
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