21 September 1998 External T.I. 9823965 - HBP WITHDRAWAL, PROPERTY

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Can property , other than cash, be withdrawn from an RRSP under the home buyer’s plan?

Position: Yes.

Reasons:

The provisions only refer to an amount and an amount can include the value of rights or things and property is defined to include a property of any kind including a right.

XXXXXXXXXX 							982396
M. P. Sarazin
Attention: XXXXXXXXXX 

September 21, 1998

Dear Sirs:

Re: Withdrawal of Property Under Home Buyers Plan

This is in reply to your facsimile dated September 14, 1998, wherein you asked whether property other than cash can be withdrawn from a registered retirement savings plan (“RRSP”) under the home buyers plan (“HBP”) described in section 146.01 of the Income Tax Act (the “Act”).

Comments

An “eligible amount” is defined in subsection 146.01(1) of the Act to mean an amount received at a particular time by an individual as a benefit out of or under an RRSP where certain conditions described therein are satisfied. We note that the definition does not specifically require that the amount be withdrawn in the form of cash.

A “benefit” is defined in subsection 146(1) of the Act to mean any amount received out of or under an RRSP other than certain exceptions which are not relevant in respect of the issue at hand. For purposes of the Act, the expression “amount” is defined in subsection 248(1) of the Act to mean money, rights or things expressed in terms of the amount of money or the value in terms of money of the right or thing.

We are of the view that, since there is not a specific restriction within the HBP provisions of the Act requiring the withdrawal of an amount in the form of cash, an individual could withdraw property out of the RRSP and, where all of the conditions in the definition of eligible amount are satisfied, the withdrawal of property would qualify as an eligible amount.

We trust these comments will be of assistance.

Yours truly,

Paul Lynch
for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate