Revenu Canada Taxation Head Office
A.B. Adler (613) 957-8962
November 16, 1989
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This is in reply to your letter of November 4, 1989 in which you requested our views concerning the eligibility of the proposed acquisition of an interest in an existing second mortgage from your spouse as a qualified investment for your registered retirement savings plan (RRSP).
As indicated in paragraph 23 of our Information Circular No. 70-6R (copy enclosed) we do not give written opinions on proposed transactions. Should you require an advance income tax ruling please refer to paragraphs 15 and 16 therein, in particular.
For your information paragraph 8 of the Special Release to Interpretation Bulletin No. IT-320R (copy enclosed) describes the circumstances under which a mortgage secured by real property situated in Canada may become eligible to be a qualified investment for an RRSP. Note that for purposes of paragraph 8(b) therein it is a question of fact whether in a specific case an unrelated mortgagor and the annuitant under an RRSP deal at arm's length, and, as indicated in paragraph 14(1) of the above mentioned Circular, we generally do not provide rulings in such circumstances.
We trust that our comments and enclosures will be sufficient for your purposes.
Yours truly,
for Director Financial Industries Division Rulings Directorate