G. Thornley (613) 957-2101 Attention:
Dec 23 1987
Re: Revised Section 304 of the Income Tax Regulations
This is in reply to your letter of December 4, 1987 and further to our telephone conversation of December 15, 1987 concerning your request for clarification of the definition of "spouse", pursuant to proposed new subparagraph 304(4) of the Regulations. The definition of "spouse" of a particular person in Regulation 304(4) is proposed to include:
"b) a person of the opposite sex who is cohabiting with the particular person in a conjugal relationship."
You ask if the proposed definition of spouse that includes a "common-law" spouse is intended to extend to annuity contracts purchased pursuant to a registered retirement savings plan ("RRSP").
Our Comments
We are not in a position to give you a definitive reply to your question because the provisions to which you refer are not yet law. However, as discussed during our telephone conversation, it is our view that Regulation 304(1)(a) merely removes the plans referred to therein, including RRSP's, from the accrual rules in subsections 12.2(3) and (4) of the Income Tax Act. Thus, an annuity contract purchased pursuant to an RRSP would be subject to the rules governing RRSP's with respect to the meaning of spouse.
We trust our views will be helpful.
Yours truly,
ORIGINAL SIGNED BY Wm. & McColm
for Director Small Business and General Division ialty Rulings Directorate Specialty Rulings Directorate Legislative and Intergovernmental Affairs Branch