20 November 1990 External T.I. 9029585 F - Bonus Interest Paid into RRSP as Advantage Extended to Annuitant

By services, 18 January, 2022
Official title
Bonus Interest Paid into RRSP as Advantage Extended to Annuitant
Language
French
CRA tags
146(2)(c.4)
Document number
Citation name
9029585
Severed letter type
Technical Interpretation - External
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
632584
Extra import data
{
"field_external_guid": [],
"field_proprietary_citation": [],
"field_release_date_new": "1990-11-20 07:00:00",
"field_tags": []
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Main text
24(1) 5-902958
  D.S. Delorey
  (613) 957-3494

19(1)

November 20, 1990

Dear Sirs:

This is in reply to your letter of October 23, 1990 concerning paragraph 146(2)(c.4) of the Income Tax Act (the "Act").

Your particular concern relates to the situation where a bank intends to offer a higher than normal rate of interest to individuals who acquire a registered retirement savings plan ("RRSP") through the bank. This "bonus" interest would be paid into an RRSP rather than to the annuitant and you ask if this would contravene paragraph 146(2)(c.4) of the Act.

It is our view that payment of bonus interest into an RRSP does not contravene paragraph 146(2)(c.4) of the Act.

The above comments are an expression of opinion only and are not binding on the Department, as explained in paragraph 21 of Information Circular 70-6R2. We trust however that they are of assistance to you.

Yours truly,

for DirectorFinancial Industries DivisionRulings Directorate