| 19(1) | File No. 5-8636 |
| A.B. Adler | |
| (613) 957-8962 |
October 16, 1989
Dear Sirs:
This is in reply to your letter of August 30, 1989 concerning your client, 19(1)
24(1)
There is provision, under proposed legislation, for the direct transfer of a lump sum amount from an RPP to an RRSP for the benefit of the spouse or former spouse of a RPP member where the amount is transferred pursuant to a court order or written agreement relating to a division of property on marriage breakdown. The Honourable Michael H. Wilson, Minister of Finance, announced in his April 27, 1989 Budget that, effective January 1, 1989 such lump sum payments may be transferred between registered plans on a tax free basis solely on a direct plan to plan basis. At this time the proposed legislation has yet to be introduced in Parliament. You may wish to contact the Department of Finance directly concerning the status of the proposed legislation.
Our function is interpretive rather than advisory, and therefore we are not in a position to advise you whether there is any risk of an adverse tax consequence associated with the three options offered by 24(1)
We trust that our comments will be of assistance to you.
Yours truly,
for Director Financial Industries DivisionRulings Directorate