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.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues:
Mutual fund trust elects per 132(6) for retroactive status. Is acquisition of unit by deferred income plan a qualified investment is acquired prior to date of election.
Position TAKEN:
yes
Reasons FOR POSITION TAKEN:
previously taken;5-5434
5-950429
XXXXXXXXXX D. Duff
Attention: XXXXXXXXXX
May 15, 1995
Dear Sirs:
Re: Units of a Mutual Fund trust as a Qualified Investment
This is in response to your letter of February 7, 1995 requesting our opinion on whether a unit of a mutual fund trust would be a qualified investment, at the time of acquisition, for a trust governed by a registered retirement savings plan, registered retirement income fund or deferred profit sharing plan, in the circumstances described therein.
You referred to a trust that, in its first year, meets all of the criteria in subsection 132(6) of the Income Tax Act ("Act") except the minimum number of investors. If it meets this criteria by the required time in its second year and makes a valid election under subsection 132(6) of the Act it will be deemed to be a mutual fund trust from the beginning of its first year. It is the Department's position that the units acquired in the first year by the aforementioned deferred income plans would not be an acquisition of a non-qualified investment for the purposes of subsections 146(10), 146.3(7) and 198(1) of the Act.
We trust our comments will be of assistance to you.
Yours truly,
for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 1995
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 1995
Email this Content