The estate of the deceased annuitant of an RRSP was fully settled without the executor (his surviving wife and the sole beneficiary) being aware of the RRSP. Later, the RRSP became unclaimed property and the Quebec Commission for dealing with unclaimed property (the “DPBNR”) instructed the RRSP issuer to liquidate the RRSP and remit the proceeds in cash to it. In a subsequent taxation year, the surviving spouse claimed and received the amount from the DPBNR as the sole estate beneficiary. The amount received by her was net of fees that were imposed by the DPBNR, which were treated under the unclaimed property legislation and regulations (the “UPA and RUPA”) as an obligation of the beneficiary. In finding that there was constructive receipt by her of the portion of the amount against which such fees had been levied, CRA stated:
These fees, which are levied under the provisions of the UPA and the UPA, are imposed in satisfaction of a legal obligation of the beneficial owner to pay them. In this regard, we are of the view that, for purposes of the Act, such amounts are to be considered as having been received (footnote 5 [citing Toth, 2006 TCC 116]) by the beneficial owner for the purposes of the relevant provisions. In this context, we are of the view that the beneficial owner is considered, for the purposes of the Act, to have received not only the amount physically paid to her by the DPBNR but also amounts levied as fees by the DPBNR in satisfaction of a legal obligation of the beneficial owner, in accordance with the provisions of the UPA and the RUPA.