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: May an annuitant pay the fees related to her/his RRSP outside the RRSP?
Position: Other than costs related directly to property, yes.
Reasons: Subject to the terms of the plan.
XXXXXXXXXX 5-990646
Fouad Daaboul
March 17, 1999
Dear Madam:
Re: Registered Retirement Savings Plan ("RRSP") Fees
We are writing in response to your letter of November 11, 1999, wherein you asked whether your son could pay certain fees relating to his RRSP.
Since your letter deals with a completed transaction which falls under the responsibility of the relevant Tax Services Office, we can only provide the following general comments which are not binding on the Department but may be of some assistance.
We enclose a copy of the general letter issued by this Directorate on February 23, 1998, wherein we provided the Department's general position on management, investment counsel and administration fees related to a RRSP. Subject to the terms of the RRSP contract, it is our view that the annuitant may pay directly such fees to the financial advisor.
Where brokerage fees, commissions or valuation costs are incurred by the RRSP in connection with its acquisition of a property, it is our view that such brokerage fees, commissions and valuation costs must be paid by the RRSP and are to be included in the computation of the cost of the said property.
We trust our comments will be of assistance to you.
Yours truly,
Paul Lynch
for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
Enclosure
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© Her Majesty the Queen in Right of Canada, 1999
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