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.
XXXXXXXXXX
Attention: XXXXXXXXXX
Dear Sirs:
RE: Registered Retirement Savings Plan (RRSP)
This is in reply to your facsimile of October 1, 1992 sent to the Registered Plans Division, which was forwarded to this Directorate for reply, requesting clarification on whether or not a loan program offered by your institution would be considered an advantage under an RRSP pursuant to paragraph 146(2)(c.4) of the Income Tax Act (the "Act").
The situation given in your letter appears to be an actual fact situation and as noted in Information Circular 70-6R2, we do not express opinions on specific proposed transactions other than as a reply to an advance income tax ruling request. As a consequence thereof, we may only offer the following general comments.
Offers from RRSP issuers of such things as chances to win prizes, trips, free appliances, and interest-free loans to purchasers of their RRSP's are advantages that are prohibited by paragraph 146(2)(c.4) of the Act notwithstanding that the customer could obtain the advantage by some other means such as purchasing a non-registered investment. If the advantage remains in the RRSP, such as the earning of bonus interest in the plan or a contribution of property into the RRSP, this would not contravene the aforementioned provision.
We trust that the above comments will be of assistance to you.
Yours truly,
for DirectorFinancial Industries DivisionRulings Directoratec.c.: Geoff Turrell Registered Plans Division
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