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.
Revenue Canada Taxation Head Office
F. Francis (613)957-3496
December 20, 1988
Dear Sirs:
This is in reply to your letter of November 15, 1988 wherein you requested our opinion with respect to qualified investments for registered retirement savings plans ("RRSP"} for purposes of paragraph 146(l)(g) of the Income Tax Act and Section 4900 of the Income Tax Regulations (the "Regulations").
You specifically enquire as to whether shares of a Canadian public corporation would be qualified investments for an RRSP where the corporation has a dividend reinvestment plan whereunder the shareholder may elect to have his dividends used to buy further shares in the corporation.
In our opinion, a share of the capital stock of a public corporation will be a qualified investment for an RRSP under paragraph 4900(l)(b) of the Regulations notwithstanding that the corporation has a dividend reinvestment plan.
We trust the above comments will be of assistance to you.
Yours truly,
for Director Financial Industries Division Rulings Directorate
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© His Majesty the King in Right of Canada, 1988
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