| 5-922981 | |
| 24(1) | D. S. Delorey |
| (613) 957-8953 |
Attention: 19(1)
October 22, 1992
Dear Sir/Madam:
This is in reply to your letter of October 1, 1992 concerning the proposed amendment to paragaraph 146.3(1)(b.1) of the Income Tax Act (the "Act") establishing new minimum annual amounts under a registered retirement income fund ("RRIF").
With respect to the proposed amendment to paragraph 146.3(1)(b.1) of the Act, subclause 84(9) of the June 1992 Notice of Ways and Means Motion provides that the new rules apply:
(a) to the 1992 and subsequent taxation years with respect to
(i) retirement income funds entered into after February 1986, and
(ii) retirement income funds entered into before March 1986 and revised or amended after February 1986 and before 1992; and
(b) to the taxation year in which a retirement income fund is first revised or amended after February 1986 and to subsequent taxation years, where the fund was entered into before March 1986 and was not revised or amended after February 1986 and before 1992.
We thus agree that if the legislation is enacted as proposed, the new minimum annual amounts will not apply where the RRIF was established before March 1986, unless the RRIF is revised or amended after February 1986. The new rules would apply, however, where another RRIF is established by the annuitant after February 1986 and property is transferred from the pre-March 1986 RRIF to the new RRIF. With respect to the transfer of property from one RRIF to another RRIF, we refer you to paragraphs 29 through 33 of Information Circular 78-18R4.
With respect to your question concerning the meaning of the expression "revised or amended", a RRIF will be considered to be revised or amended where there is a change to the plan as registered with Revenue Canada. As explained in paragraph 20 of Information Circular 78-18R4, the Registered Plans Division should be notified of any proposed change to a RRIF to ensure that the change does not result in its deregistration under subsection 146.3(11) of the Act.
We trust our comments are of assistance.
Yours truly,
for DirectorFinancial Industries DivisionRulings Directorate