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:
Whether shares of certain corporation are qualified investments for RRSP.
Position TAKEN:
Question of fact.
Reasons FOR POSITION TAKEN:
Routine - see for example 941278, 920511, 5-3862
XXXXXXXXXX 942613
Attention: XXXXXXXXXX
October 26, 1994
Dear Sirs:
Re: Qualified Investments for Registered Retirement Savings Plan (RRSP)
This is in reply to your letter of September 26, 1994, in which you ask for a ruling that shares of XXXXXXXXXX are qualified investments for an RRSP.
The Department is unable to confirm whether any particular property would be a qualified investment for an RRSP since this is a question of fact which must be determined at the time the property is acquired by the RRSP. We can offer, however, the following general comments for your information.
There are several types of shares which are qualified investments for an RRSP, one of which is described in paragraph 4900(1)(b) of the Income Tax Regulations. This provision states that a share in a public corporation is a qualified investment for certain deferred income plans, including RRSP's. The term "public corporation" is defined in paragraph 89(1)(g) of the Income Tax Act and includes a corporation the shares of which are listed on a prescribed stock exchange in Canada. We point out, however, that the XXXXXXXXXX is not such a prescribed stock exchange under the Act.
As noted in paragraph 5 of the enclosed Interpretation Bulletin IT-320R2 ("Registered Retirement Savings Plans - Qualified Investments"), it is possible for a corporation resident in Canada to elect to be a public corporation notwithstanding that its shares are not listed on a prescribed stock exchange in Canada. See also paragraphs 3 and 4 of the enclosed Interpretation Bulletin IT-391R ("Status of Corporations") for more information concerning an election to be a public corporation.
Although the foregoing comments are not binding on the Department, we trust they satisfactorily explain the requirements of the Act on this topic.
Yours truly,
for Director
Financial Industries Division
Rulings Directorate
Policy and Legislation Branch
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