10 January 1997 External T.I. 9700355 - RRSP PROPERTY TRANSFERS AT COST

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

Principal Issues:

On a 146(16) transfer of all property from one self administered RRSP to another, our position is that cost amount of property remains the same. What obligation is there to pass this information on to the new RRSP.

Position:

There is no requirement in the Act but we would hope trustees would be fair to the annuitant.

Reasons:

General application of the Act. (However there are provisions that relate to RRIFs)

XXXXXXXXXX							5-970035

Attention: XXXXXXXXXX

January 10, 1997

Dear Sirs:

Re: Change of Trustees for RRSPs

This is in reply to your facsimile of January 3, 1997, in which you asked if a transferor of an RRSP has an obligation to provide information to a transferee of the RRSP when trustees of an RRSP are changed.

As indicated in our letter to you of November 21, 1996, the Department does not consider any disposition or acquisition of property to occur as a consequence of the transfer of property of an unmatured, self- administered RRSP from one trustee to another pursuant to the provisions of subsection 146(16) of the Income Tax Act (the "Act"). Accordingly, we take the position that property will maintain its original cost amount when transferred to the new trust.

To facilitate a transfer of property in these circumstances it is clear that the originating trustee must cooperate with the new trustee by providing adequate information and we would generally expect that in fairness to the annuitant of the RRSP such information would be freely provided. Nevertheless, the Act does not have any requirements for the transfer of any records from one trustee to the other for the purpose of allowing the transferor to determine the cost amount of the property transferred.

Yours truly,

for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate