27 March 2014 Ministerial Correspondence 2014-0518601M4 - Non-qualified investments held in registered plans -- summary under Subsection 207.04(2)

In response to a general inquiry, CRA stated:

If a trust governed by a registered plan acquires a qualified investment that later becomes a non-qualified investment, the holder of the TFSA or the annuitant of the RRSP or RRIF will be subject to a tax equal to 50% of the fair market value of the investment at the point in time it becomes non-qualified. In this situation, the tax is refundable if the holder or annuitant disposes of the non-qualified investment before the end of the next year or at any later time the Minister of National Revenue considers reasonable given the circumstances.

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Topic
Income Tax Act - s. 207.04(2)
Tagline
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
314487
d7 import status
Drupal 7 entity type
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Drupal 7 entity ID
343535
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