5-910635
Dear Sirs:
Re: 24(1) Registered Retirement Savings Plan ("RRSP")
This is in reply to your letter of February 26, 1991 concerning the above-mentioned subject.
As indicated in information Circular 70-6R2, we do not express opinions on specific proposed transactions other than as a reply to an advance income tax ruling. As a consequence thereof, we may only offer the following general comments.
To qualify under Clause 146(1)(j)(ii)(B) of the Income Tax Act, (the "Act") 24(1) must be a corporation approved by the Governor in Council for the purposes of section 146 of the Act that is licensed or otherwise authorized under the laws of Canada or a province to issue investment contracts. To qualify under paragraph 146(1)(j)(i) of the Act 24(1) must, be a person licensed or otherwise authorized under the laws of canada or a province to carry on in Canada an annuities business.
It is a question of fact whether 24(1) meets the requirements of section 146(1)(J) of the Act.
Assuming the annuity issued meets all the requirements of paragraph 146(1)(i.1) of the Act and is purchased from a corporation approved by the Governor in Council for the purpose of section 146 of the Act or from a person licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada an annuities business, it would be considered a qualified investment for the purposes of subparagraph 146(1)(g)(iii) of the Act.
We trust the above comments will be of assistance to you.
Yours truly,
for DirectorFinancial Industries DivisionRulings Directorate