24 October 1997 External T.I. 9727715 - PAYMENT-IN-KIND, RRIF

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:

Can the "minimum amount" be paid in a form other than cash?

Position:

Yes

Reasons:

Nothing in the RRIF provisions prohibiting the payment-in-kind.

                                         	972771
XXXXXXXXXX		                                 M.P. Sarazin

October 24, 1997

Dear Sir:

Re: Self-Directed Registered Retirement Income Fund ("RRIF")

This is in reply to your letter dated October 10, 1997, wherein you requested our views as to whether the "minimum amount" under a RRIF may be paid in a form other than cash.

We reviewed the definition of "minimum amount" in subsection 146.3(1) of the Income Tax Act (the "Act"), "retirement income fund" in subsection 146.3(1) of the Act and "amount" in subsection 248(1) of the Act, the registration requirements contained in subsection 146.3(2) of the Act, and the income inclusion rules in subsections 146.3(5), (5.1), and (5.4) of the Act. In our view, there is nothing contained in these provisions that would prohibit the payment-in-kind of the "minimum amount" under a RRIF.

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

Yours truly,

for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch