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.
| 19(1) |
File No. 5-9356 |
| |
F. Francis |
| |
(613) 957-3496 |
March 23, 1990
Dear Sirs:
This is in reply to your letter of December 22, 1989, and further to our telephone conversation on February 8, 1990, wherein you requested a technical interpretation in respect of the calculation of the minimum amount under paragraph 146.3(1)(b.1) of the Income Tax Act (the "Act").
It is your position that this provision creates a problem for people who are born on the first day of January where the term of the registered retirement income fund terminates at the end of the year in which the annuitant or his spouse reaches the age of 90 years. You request our opinion as to whether annuitants born on the first day of January are assumed not to be born at the beginning of the year.
Paragraph 146.3(1)(b.1) of the Act clearly defines the minimum amount to equal the quotient obtained when the fair market value of the property at the beginning of the year is divided by the number that is the difference between 90 and the number that is the age of the annuitant or the spouse at the beginning of the year. It should be noted that the Act provides no discretion in this regard.
We trust the above comments will be of assistance to you.
Yours truly,
for DirectorFinancial Industries DivisionRulings Directorate
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© Her Majesty the Queen in Right of Canada, 1990
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© Sa Majesté la Reine du Chef du Canada, 1990
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