Principal Issues: Will the CRA provide further guidance with respect to specific security investments that would be considered a qualified investment for purposes of the amended definition of "qualified investment" in paragraph (d) of section 204 of the Act?
Position: Question of fact
Reasons: The CRA will not provide an all-inclusive list of specific investments. The amended definition of "qualified investment" in paragraph (d) of section 204 of the Act uses the broad term "securities", this term should be interpreted using the ordinary meaning of the term as used in the financial community.
2007-025198
TEI dated October 11, 2007
Question from page 6 - 2007 Budget measures regarding qualified investments for RRSP
Will the CRA be providing further guidance on specific investments that will now be considered a qualified investment for purposes of the amended definition of "qualified investment" in paragraph (d) of section 204 of the Income Tax Act (the "Act")?
CRA Response
The CRA will not be providing a list of securities that may now be considered qualified for purposes of amended paragraph (d) of the definition of "qualified investment" in section 204 of the Act. As noted in the Department of Finance technical notes accompanying the change to paragraph (d), the amendment expands the types of qualifying listed securities to include, for example, listed units of foreign real estate investment trusts, foreign partnerships and foreign gold and silver exchange traded funds. It is our view that the word "securities" as used in amended paragraph (d) of the definition of qualified investment in section 204 of the Act be given a broad application and interpreted using the plain-meaning approach to refer to any security (other than future contracts or similar derivatives that are specifically excluded from the definition) listed on a prescribed stock exchange in or outside of Canada.
The CRA will only consider whether a particular investment meets the definition of a "qualified investment" as defined under the Act in the context of an advance income tax ruling request, which is made in accordance with Information Circular 70-6R5, Advance Income Tax Rulings.
Kim Duval
957-2115