22 April 1992 External T.I. 5-921033

Annuitants who pay annual mortgage administration fee in respect of mortgages held in their RRSP will be considered to have made a gift to the plan.

Administration fees paid by the annuitant of an RRSP, in order to be deductible, should relate to the overall direction and management of the affairs of the plan trust and should relate to the type of services normally provided by a trustee to the annuitant.

Because both legal and beneficial ownership of securities for which advice or services have been provided, must belong to the taxpayer claiming the deduction, the annuitant of an RRSP cannot claim a deduction for mortgage administration fees paid by him in respect of the RRSP under s. 20(1)(bb), although administration fees which relate to the overall direction in management of the affairs of the plan trust may be deductible under s. 18(1)(a).