| 24(1) | 5-901933 |
| D.J. Lightheart | |
| (613) 957-8961 | |
| 19(1) |
October 15, 1990
Dear Sirs:
We are writing in response to your letter of June 29, 1990 in which you enquire as to the RRSP eligibility of U.S. Call Options.
In order for an asset to be RRSP eligible, it must be a qualified investment for the purposes of an RRSP. Qualified investment is defined in Paragraph 146(1)(g) of the Income Tax Act. Included among the eligible investments are shares listed on a prescribed stock exchange in Canada, shares listed on a prescribed stock exchange in a country other than Canada and warrants and rights listed on Canadian stock exchanges the underlying asset of which would qualify as a qualified investment. There is, however, no provision to allow the holding of a U.S. Call Option as these are listed on a stock exchange in a country other than Canada.
We trust that our comments will be of assistance to you.
Yours truly,
for DirectorFinancial Industries DivisionRulings Directorate