15 October 1990 Income Tax Severed Letter

By services, 22 July, 2022
Language
English
Document number
Severed letter type
Miscellaneous
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
656339
Extra import data
{
"field_external_guid": [
"menu:://Federal Income Tax [CCH Tax ]/Tax Window Files/Tax Window Files/Tax Window Files/1990s/1990 [NV90_433 - OC90_200.201]/OC90_196 — RRSP Eligibility of U.S. Call Options"
],
"field_proprietary_citation": [],
"field_release_date_new": "1990-10-15 08:00:00",
"field_tags": []
}
Main text
24(1)
                                             5-901933
                                             D.J. Lightheart
                                             (613) 957-8961
          19(1)

October 15, 1990

Dear Sirs:

We are writing in response to your letter of June 29, 1990 in which you enquire as to the RRSP eligibility of U.S. Call Options.

In order for an asset to be RRSP eligible, it must be a qualified investment for the purposes of an RRSP. Qualified investment is defined in Paragraph 146(1)(g) of the Income Tax Act. Included among the eligible investments are shares listed on a prescribed stock exchange in Canada, shares listed on a prescribed stock exchange in a country other than Canada and warrants and rights listed on Canadian stock exchanges the underlying asset of which would qualify as a qualified investment. There is, however, no provision to allow the holding of a U.S. Call Option as these are listed on a stock exchange in a country other than Canada.

We trust that our comments will be of assistance to you.

Yours truly,

for Director Financial Industries Division Rulings Directorate