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:
Whether reimbursement by annuitant of administration fee paid by RRSP trust is a payment of a premium.
Position:
Maybe.
Reasons:
Payment into plan is a "premium" if as defined in 146(1).
XXXXXXXXXX 963936
Attention: XXXXXXXXXX
January 3, 1997
Re: Registered Retirement Savings Plan ("RRSP")
Reimbursement of Administration Fees
This is in reply to your facsimile transmission of November 26, 1996, in which you ask us to confirm our position with respect to a reimbursement by the annuitant of the RRSP administration fees which have been paid with funds of the RRSP trust.
This will serve to confirm that it is our view that where the annuitant makes a payment to his or her RRSP trust as a contribution under the trust to be applied for the purpose of providing the annuitant with a "retirement income" (as defined in subsection 146(1) of the Act) on maturity, the payment is considered a payment of a "premium" as defined in subsection 146(1) of the Income Tax Act unless it is a payment excluded in the conclusion to that definition. As you know the Department has taken the position that administration or trustee fees can also be paid directly by the annuitant outside the trust and that there is no deduction for such payments made after March 5, 1996.
We trust our comments will be of assistance to you.
Yours truly,
for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
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