What is the timing of the acquisition by an RRSP trust of a non-qualified investment that is a share subscribed for by the trust but not paid for (a "non-paid-up share") of a private corporation incorporated under Part 1A of the Quebec Companies Act? CRA responded:
In order to determine the meaning of acquisition, reference must be made to the law applicable to the contractual relationship between the parties. For the purposes of subsection 146(10) [refer now to s. 207.04(1)], the mere fact that a subscribed-for share is a non-paid-up share generally does not affect the time at which a trust acquires the share. In our view, a trust generally acquires a non-paid-up share at the time it owns it under the applicable law, which normally occurs when the share is issued and the subscriber is so notified.