Dear Sirs:
Re: Transfer of Shares to RRSP
Further to our telephone conversation of November 11, 1991, concerning the value of shares which entitled the original owner to tax credits, it is, of course, open to a taxpayer in a self-assessment system to determine that value and to file his or her returns accordingly. Nevertheless, since such shares normally do not have any market sales or other readily available indicators of fair market value, it is the Department's administrative position with respect to the transfer or sale of such shares to the original owner's RRSP or RRIF within 30 days of purchase to accept that the fair market value will be equal to the original cost less the amount of tax credits.
Yours truly,
Section ChiefDeferred Income PlansFinancial Industries DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch