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: Would the reimbursement by an RRSP issuer of early redemption fees constitute a prohibited advantage under paragraph 146(2)(c.4) where the fees result from transferring from one issuer to another?
Position: No
Reasons: The reimbursement into an RRSP is not income from a source to the annuitant, a benefit under the RRSP, contribution to the RRSP or an advantage under 146(2)(c.4).
XXXXXXXXXX 2000-004039
M. P. Sarazin
Attention: XXXXXXXXXX
October 19, 2000
Dear Sirs:
Re: Reimbursement of Mutual Fund Redemption Fees
This is in reply to your letters of August 1 and August 3, 2000, requesting our views on the reimbursement of redemption fees charged by mutual funds held in a registered retirement savings plan ("RRSP").
In your letter you have outlined what is an actual fact situation related to proposed transactions. As noted in Information Circular 70-6R3 (available at your local tax services office or on the internet at www.ccra-adrc.gc.ca/formspubs/menu-e.html), this directorate can only provide an opinion concerning the tax consequences associated with specific proposed transactions in the form of an advance income tax ruling. Consequently, we can only provide you with the following general comments.
In our opinion, such a reimbursement by the issuer into the RRSP is not an amount that the annuitant is entitled to receive and therefore is not income from a source nor, when paid into the RRSP, a contribution to the RRSP by the annuitant. Furthermore, , it will not be considered to be an advantage pursuant to subparagraph 146(2)(c.4)(ii) of the Income Tax Act.
We trust the above comments will be of assistance to you.
Yours truly,
Patricia Spice
for Director
Financial Industries Division
Income Tax Rulings Directorate
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 2000
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 2000
Email this Content