Subsection 4900(1)
Paragraph 4900(1)(b)
Administrative Policy
S3-F10-C1 - Qualified Investments – RRSPs, RESPs, RRIFs, RDSPs, FHSAs and TFSAs
Back-dating rule effective for Reg. 4900(1)(b) purposes
1.24 The post-amble of the public corporation definition in subsection 89(1) allows a new...
3 January 2002 External T.I. 2001-0109425 F - REER TITE D'UNE SOCIETE EN FAILLITE
Regarding whether a taxpayer can keep a security of a bankrupt corporation in the taxpayer’s RRSP, CCRA stated:
[A]n RRSP may retain its...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 4900 - Subsection 4900(14) | Reg. 4900(12) share continues as qualified investment following bankruptcy | 89 |
24 June 1994 External T.I. 9409235 - MUTUAL FUND UNITS AS QUALIFIED INVESTMENT FOR RRSP
Because one of the criteria in s. 131(8)(a) is that the corporation be a public corporation, a share of a mutual fund corporation will be a...
23 February 1994 External T.I. 9402255 - HAA2255-7 RRSP INVESTMENTS PUBLIC CORPORATIONS
A corporation can verify its status as a public corporation through the District Office at which it files its returns. Many RRSP trustees will...
1 June 1993 Income Tax Severed Letter 930642A F - Qualified Investment
Shares represented by an instalment receipt and that are pledged to a seller of shares to secure the obligation of the holder to pay the unpaid...
13 January 1993 T.I. (Tax Window, No. 28, p. 18, ¶2397)
The delisting of a share, the suspension of its trading or the bankruptcy of the corporation will generally not cause the share to become an...
7 April 1992 T.I. (Tax Window, No. 18, p. 18, ¶1867)
Escrowed shares may constitute a qualified investment.
7 November and 19 December 1990 T.I. (Tax Window, Prelim. No. 2, p. 19, ¶1060)
Where shares of a corporation are not qualified at the time of acquisition because the corporation is not a public corporation, they cannot become...
4 July 1989 T.I. (Dec. 89 Access Letter, ¶1058)
Shares of a class which are not listed on an exchange are qualified investments where shares of another class of the corporation are listed.
Paragraph 4900(1)(c.1)
Administrative Policy
4 May 2006 Roundtable, 2005-0161541C6 F - Placements admissibles - dépôts
Is a guaranteed investment certificate or term deposit denominated in Canadian or foreign currency issued by a bank in Canada or a trust company a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 204 - Qualified Investment - Paragraph (b) | GIC or term deposit is a similar obligation | 94 |
| Tax Topics - Income Tax Act - Section 204 - Qualified Investment - Paragraph (f) | GIC could qualify under para. (b) or (f) | 123 |
| Tax Topics - Income Tax Act - Section 204 - Qualified Investment - Paragraph (a) | not a qualifying deposit if payable outside Canada or in foreign currency | 181 |
6 February 2001 External T.I. 2001-0066525 - GIC denominated in foreign currency
In responding to a question as to whether a guaranteed investment certificate ("GIC") issued by a Canadian bank and denominated in a foreign...
29 August 1995 External T.I. 9506325 - SIMILAR OBLIGATIONS AND 212(1)(B)(II)(C)(II)
Regarding whether the interest on a GIC issued in non-Canadian currency by a provincial Crown agent qualified as being on “bonds, debentures,...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(b) - Subparagraph 212(1)(b)(ii) | 40 |
4 April 1991 External T.I. 9104835 F - Interpretation of Bonds, Debentures, Notes or Similar Obligations
In finding that banker’s acceptances were not qualified investments under former s. 204(e)(iii), Revenue Canada stated:
[B]onds, debentures and...
Paragraph 4900(1)(d)
Administrative Policy
11 January 2002 External T.I. 2001-0106745 - MFI CLASS OF UNITS QUALIFIED INVESTMENT
Units from a mutual fund trust's different classes of units will satisfy Regulation 4900(1)(d) even if a particular class does not satisfy the...
Paragraph 4900(1)(d.1)
Administrative Policy
4 December 2000 External T.I. 2000-0054365 - MUTUAL FUND TRUST PRES. STOCK EXCH.
"Since debts of a public corporation that only has one class of shares that trade on a prescribed stock exchange will be a qualified investment...
Paragraph 4900(1)(d.2)
See Also
Grenon v. The Queen, 2021 TCC 30
The taxpayer’s RRSP invested in units of units trusts (the “Income Funds”) which Smith J found were not units of mutual fund trusts and,...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 4801 - Paragraph 4801(a) - Subparagraph 4801(a)(i) - Clause 4801(a)(i)(A) | distribution of units that included significant purchases by minors and by adults who did not pay for their own units, was unlawful | 755 |
| Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) | purported establishment of “alter ego” MFTs through which an RRSP could invest in operating businesses was an abuse engaging GAAR | 605 |
| Tax Topics - Income Tax Act - Section 204.2 - Subsection 204.2(1.1) | alleged distribution from non-qualified investment was not an over-contribution | 277 |
| Tax Topics - General Concepts - Window Dressing | window-dressing is a deception about intention | 312 |
| Tax Topics - Income Tax Act - Section 207.1 - Subsection 207.1(1) | non-qualified investments not “included” in annuitant’s income because it was never assessed | 346 |
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) | CRA’s assessing listed taxable RRSPs in a T3GR global return was not of the taxpayer’s (also listed) RRSP /inappropriate reliance in legal opinion on certificate of fact was carelessness | 441 |
| Tax Topics - Income Tax Act - Section 207.2 - Subsection 207.2(3) | CRA’s assessment of Pt. XI.1 shown on the T3GR for all RRSPs of one type did not start the normal reassessment period for the taxpayer’s RRSP since no tax shown for it | 370 |
Paragraph 4900(1)(e)
Administrative Policy
12 June 2002 External T.I. 2002-0138625 - REGISTERED INVESTMENTS FUTURES CONTRACTS
CRA indicated that whether currency and interest rates futures contracts are prescribed investments for a registered investment (i.e., under Reg,...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 4901 - Subsection 4901(1) | whether currency and interest rates futures contracts are prescribed investment turns on Reg. 4900(1)(e) (likely, yes) | 160 |
S3-F10-C1 - Qualified Investments – RRSPs, RESPs, RRIFs, RDSPs, FHSAs and TFSAs
Writing puts and calls not subject to rules
1.40 When writing put and call options ... , no property is actually acquired by the option writer at...
15 March 2010 External T.I. 2009-0345001E5 - Qualified Investment for a RRSP
Are subscription receipts issued by a private Canadian corporation qualified investments under Reg. 4900(1)(e) if they entitle the holder to...
1 August 2007 External T.I. 2007-0247291E5 - Qualified Investments - Subscription Receipts
Are subscription receipts that provide the holder with the right to receive a cash settlement in lieu of delivery of the underlying property,...
24 March 1997 External T.I. 9705785 - SPECIAL WARRANT, QUALIFIED INVESTMENT
The underlying property must be a qualified investment throughout the period that the warrant or right is held by the RRSP. Accordingly, where the...
31 October 1996 T.I. 962433 (C.T.O. "RRSP Options")
Because shares of a corporation listed on a prescribed stock exchange outside of Canada are qualified investments under paragraph (a) of the...
30 January 1995 External T.I. 9430685 - RRSP QUALIFIED INVESTMENTS - PUTS & CALLS
Index options are not qualified investments for an RRSP except in respect of the particular time, if any, when it can be clearly established that...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 146 - Subsection 146(10) | 75 | |
| Tax Topics - Income Tax Act - Section 146 - Subsection 146(4) | 18 | |
| Tax Topics - Income Tax Act - Section 146 - Subsection 146(9) | 44 |
27 October 1994 Internal T.I. 9421586 - REGISTERED INVESTMENT AND STOCK INDEX FUTURES CONTRACT
A stock index futures contract is not a qualified investment for a deferred income plan or a prescribed investment for a registered investment.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 132 - Subsection 132(6) | stock index futures | 16 |
| Tax Topics - Income Tax Act - Section 204.6 - Subsection 204.6(1) | no tax under s. 204.6 if qualify as an MFT/tax for quasi-MFT re futures contract based on transaction costs | 139 |
27 October 1994 External T.I. 9427105 - OPTIONS AS RRSP QUALIFIED INVESTEMENTS
If the subject of a call option is a qualified investment, the call options is a qualified investment. However, a put option is property which is...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 146 - Subsection 146(4) | 23 | |
| Tax Topics - Income Tax Act - Section 146 - Subsection 146(9) | 17 |
24 October 1994 External T.I. 9426305 - CONVERTIBLE DEBENTURES AS QUALIFIED INVESTMENTS
A debenture that is convertible into shares of an eligible corporation or shares of a small business corporation will not qualify under Regulation...
31 August 1994 External T.I. 9420195 - TSE 35 PUT WARRANTS, QUALIFIED INVESTMENTS FOR RRSPS
TSE 35 index warrants "would not be qualified investments for an RRSP except in respect of a particular time, if any, when it can be clearly...
19 May 1993 T.I. (Tax Window, No. 31, p. 5, ¶2512)
A put option is not a qualified investment as it is a right to dispose of, rather than to acquire, a security.
92 C.R. - Q.51
A "poison pill" warrant that cannot be severed from the share to which it relates and that, therefore, cannot itself be listed, will not be a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 15 - Subsection 15(1) | 36 | |
| Tax Topics - Income Tax Act - Section 49 - Subsection 49(1) | 23 |
31 July 1991 T.I. (Tax Window, No. 7, p. 21, ¶1380)
Rights of shareholders to acquire additional shares at a discount in the event of a take-over bid do not meet the requirements of Regulation...
6 June 1990 T.I. (November 1990 Access Letter, ¶1540)
Nikkei put warrants are not qualified investments because they do not give the owner the right to acquire a qualified investment at all times.
19 April 1990 T.I. (September 1990 Access Letter, ¶1431)
Re eligibility of listed warrants or call options.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 146 - Subsection 146(4) | 39 |
Read, "Technical Matters", 89 C.R. p. 783
Where in an issue of shares and warrants, separate trading of the warrants and shares for a period of time, typically thirty days, is prohibited...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 204 - Qualified Investment - Paragraph (d) | 26 |
Articles
Leslie Morgan, "Warrants, Rights and Options as Qualified Investments", Corporate Finance, Vol. XII, No. 1, 2004, p. 1158.
Paragraph 4900(1)(g)
Administrative Policy
25 June 1991 T.I. and May 1991 Question and Answer (Tax Window, No. 3, p. 23, ¶1225)
Bonus interest paid by a credit union on invested funds which remain in the RRSP will not cause the investment to be non-qualified, nor will a...
Paragraph 4900(1)(i)
Administrative Policy
12 May 1995 External T.I. 9513105 - REGISTERED CHARITY DEBENTURES FOR RRSP
Debentures issued by a non-profit, non-share corporation that are not guaranteed by any third party will not be qualified investments.
11 October 1994 Internal T.I. 9417147 - RRSP QUALIFIED INVESTMENT IN DEBENTURES
A debenture from a Canadian subsidiary of a corporation whose shares are listed on the Vancouver Stock Exchange is a qualified investment for an...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 206 - Paragraph 206(1)(d.1) | 162 |
21 December 1993 T.I. HAA7255-7 (C.T.O. "Interest in a Bond as Qualified Investment for RRSP")
"An 'interest' in a bond or similar obligation that is a qualified investment for an RRSP pursuant to paragraph 4900(1)(i) of the Income Tax...
Paragraph 4900(1)(j)
See Also
Stewart v. The Queen, 2019 TCC 22
A corporation that was unrelated to the taxpayers (“Zowtra”) granted a mortgage for $1.8 million (the “Zowtra Mortgage”) on Alberta lands...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 146 - Subsection 146(9) - Paragraph 146(9)(b) | mortgage issued in scam had full FMV until the funds were stolen | 415 |
| Tax Topics - General Concepts - Fair Market Value - Other | mortgage issued in a scam had full FMV | 238 |
Administrative Policy
S3-F10-C1 - Qualified Investments – RRSPs, RESPs, RRIFs, RDSPs, FHSAs and TFSAs
Acquisition of real estate on default
1.34 Real or immovable property is not a qualified investment for a registered plan. However, a registered...
27 January 2004 External T.I. 2003-0047381E5 F
CCRA indicated that the interest paid to an RRSP on a mortgage would not constitute a premium as to the portion of that interest that exceeded a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 146 - Subsection 146(1) - Premium | interest received by lender to an RRSP in excess of market rate is not a “premium” | 33 |
27 March 2003 External T.I. 2002-0178035 F - HYPOTHEQUE PLACEMENT ADMISSIBLE
CCRA provided an overview of the qualification rules in Regs. 4900(1)(j) and (j.1) including noting that “[t]here is no requirement that the...
13 July 1994 Internal T.I. 9415727 - RRSP INVESTMENT INTEREST IN NON-ARM'S LENGTH MORTGAGE
Two RRSPs can each hold an interest in a single mortgage provided each interest is owned by the respective RRSP and all of the remaining...
8 February 1994 External T.I. 9400615 - RRSP QUALIFIED INVESTMENT- MORTGAGE
A mortgage on a business property can be a qualified investment for an RRSP even where the mortgagor and the annuitant do not deal at arm's...
Paragraph 4900(1)(j.1)
Administrative Policy
S3-F10-C1 - Qualified Investments – RRSPs, RESPs, RRIFs, RDSPs, FHSAs and TFSAs
Approved lender/market interest
1.36 ... The list of approved lenders is available on the CMHC website. The interest rate and other terms must...
1 June 2016 External T.I. 2015-0601211E5 - Mortgage loan from RRSP to make a shareholder loan
An individual, who is an RRSP annuitant, borrows the “Mortgage Loan” from the RRSP, with a principal residence mortgage granted in favour of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) | money borrowed by individual from RRSP to make interest-free loan to corporation | 181 |
| Tax Topics - Income Tax Act - Section 207.01 - Subsection 207.01(1) - Advantage - Paragraph (a) | 4900(1)(j.1) insurance requirements generally arm's length/potential advantage on default | 247 |
| Tax Topics - Income Tax Act - Section 207.01 - Subsection 207.01(1) - Registered Plan Strip | 4900(1)(j.1) mortgage loan unlikely to be acquired at less than FMV | 225 |
20 July 2001 External T.I. 2001-0092425 F - PLACEMENTS ADMISSIBLES SPCC
Regarding whether the sole shareholder of a Canadian corporation can acquire a moveable hypothec from the corporation, CCRA provided an overview...
Paragraph 4900(1)(p.1)
Articles
D. Louis, "Trick or Treat? - RRSPs and Foreign Index Units", The Estate Planner, No. 46, November 13, 1998, p. 6.
Paragraph 4900(1)(s)
Administrative Policy
6 December 2001 External T.I. 2001-0113375 F - PLACEMENT REER NASDAQ
Regarding the treatment of shares listed on the Nasdaq over-the-counter market, CCRA stated:
[W]here paragraph 4900(1)(s) of the Regulations...
Paragraph 4900(1)(u)
Administrative Policy
S3-F10-C1 - Qualified Investments – RRSPs, RESPs, RRIFs, RDSPs, FHSAs and TFSAs
RCM coins
1.52 A legal tender gold or silver bullion coin produced by the Royal Canadian Mint with a minimum purity of 99.5% for gold and 99.9%...
Paragraph 4900(1)(v)
Administrative Policy
S3-F10-C1 - Qualified Investments – RRSPs, RESPs, RRIFs, RDSPs, FHSAs and TFSAs
RCM certificates
1.54 A gold or silver certificate issued by the Royal Canadian Mint or a specified corporation is a qualified investment if the...
Subsection 4900(2)
Administrative Policy
S3-F10-C1 - Qualified Investments – RRSPs, RESPs, RRIFs, RDSPs, FHSAs and TFSAs
Sub of rating agency may be accepted
1.31 ... Where the facts, corporate structure and legal relationship make it clear that a listed rating...
designated shareholder
Administrative Policy
22 February 1990 T.I. (July 1990 Access Letter, ¶1337)
Where one of a group of employees owns 49% of the shares of the corporation, another unrelated employee owns 5%, and the remaining voting shares...
Subsection 4900(3)
Administrative Policy
23 September 2003 External T.I. 2003-0035905 F - REG 4900(3)
Regarding the acquisition by a DPSP from a licensed annuity provider of a contract under which the annuity will be payable to the employee...
Subsection 4900(4)
Cases
Millward v. The Queen, 86 DTC 6538, [1986] 2 CTC 423 (FCTD)
A company owned by the taxpayer mortgaged land in favour of an RRSP of the taxpayer's partner ("Coates") in his law firm and a company owned by...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 251 - Subsection 251(1) - Paragraph 251(1)(c) | acting in concert where mutual back scratching | 132 |
The Queen v. Epstein, 84 DTC 6259, [1984] CTC 270 (FCTD)
It was held that the word "mortgagor" in an ancestor of regulation 4900(4) should be taken to refer only to the person who first grants the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Statutory Interpretation - Interpretation Act - Section 17 | 23 |
Administrative Policy
19 September 1996 External T.I. 9629885 - RRSP MORTGAGE ON LEASEHOLD INTEREST
Where a building built by a lessee on land situate in Canada qualifies as a leasehold interest or other real property, rather than as a chattel,...
21 July 1995 External T.I. 9516095 - NON-RECOURSE MORTGAGE
A non-recourse mortgage secured by real property is considered a mortgage for purposes of Regulation 4900(4).
8 February 1994 External T.I. 9400195 - RRSP - MORTGAGE AS QUALIFIED INVESTMENT
A mortgage will be a qualified investment for an RRSP where the annuitant is a member of a church and the church is the mortgagor, provided that...
26 November 1992 T.I. 923059 (September 1993 Access Letter, p. 422, ¶C144-237)
An investment of an RRSP in a fund that invested only in mortgages, where there was no evidence that the fund would hold the mortgages as nominee...
8 February 1991 T.I. (Tax Window, Prelim. No. 3, p. 22, ¶1118)
The greater the difference between the relevant commercial interest rate at the time of a mortgage loan and the interest rate offered, the more...
11 January 1991 T.I. (Tax Window, Prelim. No. 3, p. 22, ¶1089)
Where an RRSP becomes a mortgagee in possession and is required to make expenditures to maintain the property, if such payments are added to the...
Subsection 4900(6)
Administrative Policy
18 April 1990 T.I. (September 1990 Access Letter, ¶1430)
Re eligibility of the shares of a Quebec business investment company.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Fair Market Value - Shares | 51 |
2 November 89 T.I. (April 1990 Access Letter, ¶1191)
A person's dual status as both an employee and a shareholder of a corporation will not by itself cause the share to lose its status as a qualified...
Subsection 4900(12)
Administrative Policy
2001 Ruling 2001-0070523 - REAL ESTATE DEVELOPMENT ACTIVE BUSINESS
Shares of a corporation that was in the process of developing a parcel of land into a retirement community with a view to selling homes and...
Income Tax Technical News, No. 9, 10 February 1997
Where two unrelated shareholders each own 50% of the shares of a corporation, the fact that they used their own RRSPs to acquire shares of the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Other Legislation/Constitution - Federal - Indian Act - Section 87 | 26 | |
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Subparagraph 212(1)(b)(vii) | events must be beyond borrower's control | 77 |
| Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) | loss transfer must be to affiliated person - related not enough | 48 |
| Tax Topics - Income Tax Act - Section 251 - Subsection 251(1) - Paragraph 251(1)(c) | 69 | |
| Tax Topics - Income Tax Act - Section 88 - Subsection 88(1) - Paragraph 88(1)(c.3) - Subparagraph 88(1)(c.3)(ii) | 151 | |
| Tax Topics - Income Tax Act - Section 53 - Subsection 53(1) - Paragraph 53(1)(e) - Subparagraph 53(1)(e)(i) | avoidance of double taxation through absence of ACB adjustment | 129 |
Subsection 4900(13)
Administrative Policy
11 October 1996 APFF Roundtable, 7M12910 - APFF ROUND TABLE
One cannot conclude simply from the fact that a start-up corporation pays little salary to an individual who is a beneficiary of an RRSP holding...
Subsection 4900(14)
Administrative Policy
3 January 2002 External T.I. 2001-0109425 F - REER TITE D'UNE SOCIETE EN FAILLITE
Regarding whether a taxpayer can keep a security of a bankrupt corporation in the taxpayer’s RRSP, CCRA stated:
Where the security is a share of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 4900 - Subsection 4900(1) - Paragraph 4900(1)(b) | share of now-bankrupt corporation can continue to be held by RRSP | 99 |
Paragraph 4900(14)(a)
Subparagraph 4900(14)(a)(iii)
Administrative Policy
14 October 2009 External T.I. 2009-0325101E5 F - Placement admissible, part de coopérative
CRA indicated that both of the conditions of the definition of "qualifying share" in Reg. 4901(2)(a) and (b) need not be satisfied in order for a...
Subsection 4900(15)
Administrative Policy
22 November 2012 External T.I. 2012-0441781E5 F - Prohibited Investment - Cooperative
Respecting whether shares of a co-operative corporation may be prohibited investments under s. 207.01(1)(d) of the definition "prohibited...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Shareholder | investor in cooperative holds shares and is shareholder | 181 |
| Tax Topics - Income Tax Act - Section 207.01 - Subsection 207.01(1) - Prohibited Investment - Paragraph (b) - Subparagraph (b)(i) | share of cooperative can be a share of corporation for prohibited investment purposes | 71 |