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.
932845
XXXXXXXXXX P. Spice
(613) 957-8953
Attention: XXXXXXXXXX
November 15, 1993
Dear Sirs:
Re: Mortgage as A Qualified Investment for a Registered Retirement Savings Plan
This is in reply to your letter of September 1, 1993, in which you describe a proposed series of transactions and ask whether we consider the parties to be dealing at arm's length and whether the series of transactions would be considered an avoidance transaction under subsection 245(2) of the Income Tax Act (the "Act").
Written confirmation of the tax implications inherent in particular proposed transactions are given by this directorate only where the transactions are outlined in an advance income tax ruling request submitted in the manner set out in Information Circular 70-6R2. Although the Directorate provides technical interpretations of the law these are not usually provided with respect to the effects of narrowly-defined, specific transactions, even where those transactions are stated to be hypothetical. We also advise that we do not provide opinions on the application of subsection 245(2) of the Act to a fact situation; whether the Department considers a transaction to be an avoidance transaction can only be confirmed by the GAAR Committee of the Department in the context of an advance ruling request.
We are sorry we are unable to respond to your requests, but the Department cannot be perceived as providing tax planning advice.
Yours truly,
for Director Financial Industries Division Rulings Directorate
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© Her Majesty the Queen in Right of Canada, 1993
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© Sa Majesté la Reine du Chef du Canada, 1993
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