27 June 1989 Income Tax Severed Letter AC58222 - Common Shares as Qualified Investment for RRSP

By services, 22 July, 2022
Official title
Common Shares as Qualified Investment for RRSP
Language
English
Document number
Citation name
AC58222
Severed letter type
Miscellaneous
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
656752
Extra import data
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"field_external_guid": [],
"field_proprietary_citation": [],
"field_release_date_new": "1989-06-27 08:00:00",
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Main text
F. Francis
                                        (613) 957-3496

19(1)

June 27, 1989

Dear Sirs:

This is in reply to your letter of May 15, 1989 wherein you requested our opinion on whether the common shares of 24(1) would be a qualified investment for a registered retirement savings plan ("RRSP").

As noted in Information Circular 70-6R, we do not give opinions in respect of specific proposed transactions other than as a reply to an advance income tax ruling request. As a consequence thereof, we will only offer the following general comments.

Pursuant to paragraph 4900(1)(b) of the Income Tax Regulations, a share of the capital stock of a public corporation is prescribed to be a qualified investment for RRSPs. The term "public corporation" is defined under paragraph 89(1)(g) of the Income Tax Act (the "Act").

Provided that the above-noted company qualifies as a public corporation for purposes of the Act, the common shares would not be qualified investments for RRSPs notwithstanding that the shares are not listed on a prescribed stock exchange in Canada.

We trust the above comments will be of assistance to you.

Yours truly,

Wayne Douglas for Director Financial Industries Division Rulings Directorate