Section 207.2

Table of Contents

Subsection 207.2(3)

Cases

Grenon v. The Queen, 2021 TCC 30

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

The taxpayer’s RRSP invested in units of units trusts (the “Income Funds”) which Smith J found were not qualified investments for RRSPs, given that the distribution of the units to most of the unitholders had not complied with the applicable provincial securities’ laws. The trustee (CIBC Trust) had filed T3GR forms which (as instructed in IC-78R4) covered all RRSPs, including that of the taxpayer, following a particular form of plan approved by CRA. The T3GR forms reported those RRSPs (but not that of the taxpayer) which were considered to be subject to tax on various bases including the holding of non-qualified investments, and CRA assessed such tax (including, apparently, Pt. XI.1 tax) accordingly. Smith J indicated (at para. 522) that:

[T]he T3GR Return was the prescribed form intended by CRA to meet the filing requirements of RRSP trustees pursuant to paragraph 150(1)(c) and subsection 207.2(1) of the Act and section 204 of the Regulations and … it was intended as a streamlined process for the reporting of group RRSPs involving hundreds of thousands of plans under one specimen plan.

Smith J found (at para. 525) that “the T3GR Returns were not intended to override a trustee’s other reporting obligations arising from the Act, notably the obligation to file a T3 Return pursuant to paragraph 150(1)(c) or to report taxable income arising from subsection 146(10.1),” and (at para. 533) that the assessments made by CRA based on the T3GR returns were made “only in connection with the taxable plans and not in connection with the non-taxable plans that were listed for information purposes only, including the RRSP Trust.”

He went on to find that, not only were the assessments of the taxpayer’s RRSP under s. 146(10.1) original assessments that not statute-barred, but that the same conclusion applied to the assessments made under s. 207.1, stating (at para. 536):

It follows that I must reject the Appellants’ submission that the Trust Notices of Assessment issued in connection with the Specimen Plan were “original” assessments for all non-taxable plans including the RRSP Trust. I therefore conclude that the Part 1 Assessments and the Part XI.I Reassessments were not statute-barred.

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 Regulations - Regulation 4900 - Subsection 4900(1) - Paragraph 4900(1)(d.2) distribution was not lawful because the issuer had not complied with the OM exemption, which was the exemption that it had chosen to rely on 291