Principal Issue: [TaxInterpretations translation] When an RRSP transfers an amount to an RPP, does the RPP have to keep track of the fact that the amount came from a spousal RRSP?
Position: No
Reasons: Text of the Act
September 13, 2000
Montreal Tax Services Office Headquarters Technical Services Income Tax Rulings Directorate Section 475-2-1 Michel Lambert Attention: Ms. Manon Lamontagne (613) 957-8953
2000-002755
Spousal RRSP
Transfer from a registered pension plan
This is further to your memo of May 17, 2000, in which you requested our opinion on the expression “spousal plan” in subsection 146(1) of the Income Tax Act (the “Act”). It also takes into account a telephone conversation we had with Ms. Ginette Laroche to obtain clarification on this file.
You stated that when a registered retirement savings plan (RRSP) that is a spousal plan transfers amounts to another RRSP, the latter becomes a spousal plan under paragraph (a) of that definition.
You asked us the following question: “When a spousal RRSP is transferred to a registered pension plan (RPP) and that RPP is subsequently transferred to the annuitant's RRSP, does the new RRSP become a spousal RRSP, since the funds were derived from a spousal RRSP?
Ms. Laroche informed us that the question originated with a request from XXXXXXXXXX and was limited to whether an RPP must keep track of the fact that an amount it receives is from an RRSP that is a spousal RRSP, within the meaning of that expression in subsection 146(1).
Our Opinion
Paragraph (a) of the definition of “spousal plan” stipulates that such a plan means an RRSP to which a taxpayer has, at a time when the taxpayer's spouse or common-law partner was the annuitant under the plan, paid a premium, or that has received a payment out of or a transfer from an RRSP or registered retirement income fund (RRIF) that was a spousal plan in relation to the taxpayer. That definition does not refer to a transfer of an amount from an RPP to an RRSP.
Subsections 147.3(1) and 147.3(4) allow a transfer of an amount from an RPP to an RRSP. There is no requirement for the RPP plan to indicate that the amount transferred comes from an amount previously transferred to it from an RRSP. The T-2151 transfer form is similar.
Consequently, we are of the view that the Act does not require the trustee of an RPP to keep a record that an amount was transferred to the trustee from an RRSP that was a spousal plan.
As for the question of whether an RRSP becomes a spousal RRSP in the case described in your request, we will be pleased to answer that question when we have all the facts and documents pertaining to an actual situation.
In circumstances where taxpayers make transfers between RRSPs or RRIFs through an RPP in order to avoid the attribution rules in subsections 146(8.3) or 146.3(5.1), the Agency may consider applying the general anti-avoidance provision.
We hope you find these comments useful.
Financial Industries Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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