Search - considered

XXXXXXXXXX 5-980463 Fouad Daaboul Attention: XXXXXXXXXX May 28, 1998 Dear Sirs: Re: Allowable use of Options in an Registered Retirement Plan This is in reply to your letter of February 17, 1998 wherein you requested our comments as to whether the following options held in a trust governed by a registered retirement savings plan (RRSP) or registered retirement income funds (RRIF) are considered to be qualified investments. ...

The consequences to a trust and a child entering into such a transaction would best be considered after the ability to under take the transaction is determined by the trustee. ...

While not taken as comprehensive, some of the factors which would be considered in this determination include: whether or not there was a clear intent by the testator, as evidenced by the terms of the will, to create separate trusts; whether or not the trusts had common beneficiaries; whether or not the assets of each trust were segregated and accounted for separately (e.g. separate bank accounts, no undivided interests in property, separate accounting records for income received and capital and/or income disbursements); and the conduct and powers of the trustees. ...

In finding so, the Court considered: the true commercial character of the transaction; the economic context of the transaction; and the indirect effect of the loan on the taxpayer’s income-earning capacity. ...

In any event, a request for an advance income tax ruling cannot be considered where the transactions are completed or where the issues involved are primarily questions of fact. ...

Some of the factors which may be considered in determining whether the new and former employers are dealing at arm's length are the following: the agency agreement between the two employers, the legal status of both employers i.e. whether they are creations of the federal government or whether there is a Crown in Right of the new and the former employer, whether they coexist at some point in time and whether one is the successor of the other. ...

Paragraph 22 of the circular states that requests for written opinions on completed transactions are normally considered by our tax services offices. ...

On the other hand, if the property is sold to the annuitant for more than it is worth, the excess will be considered to be a contribution to the RRSP and could be subject to Part X.1 tax on overcontributions to deferred income plans. ...

A non-resident trust that meets the criteria laid out in the definition of personal trust in subsection 248(1) of the Income Tax Act (the “Act”) would be considered a personal trust for purposes of the Act. 2. ...

Reasons: Depending on the conditions placed on the amounts received by the investor the amounts may be considered to be “in respect of the cost of property and therefore subsection 12(2.1) may be applicable – however if the 3rd party manager is completely independent of the broker’s decision to rebate, subsection 12(2.1) should not be applicable. 982896 XXXXXXXXXX L. ...