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 GAAR applies to sale of assets by RRSP/RRIF to annuitant and repurchase of same undertaken to increase "cost amount" of property so that foreign property content can be increased.
Position: No reply.
Reasons:
Whether GAAR applies can only be determined in context of an advance income tax ruling request.
XXXXXXXXXX 972028
Attention: XXXXXXXXXX
August 8, 1997
Re: Sale and Repurchase of Assets by
Registered Retirement Savings Plan ("RRSP") or
Registered Retirement Income Fund ("RRIF")
This is in reply to your facsimile transmission of July 28, 1997, in which you request our views concerning the application of section 245 of the Income Tax Act (the "Act") in a particular situation.
Written confirmation of the tax implications inherent in particular proposed transactions are given by this directorate only where the transactions are outlined in an advance income tax ruling request submitted in the manner set out in Information Circular 70-6R3. Although the Directorate provides technical interpretations of the law, we do not provide opinions on the application of subsection 245(2) of the Act to a fact situation. Whether the Department considers a transaction to be an avoidance transaction can only be confirmed in the context of an advance ruling request.
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
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