4 November 1999 Income Tax Severed Letter 9928786 - TRUSTEE FEES PAID FROM RRSP

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: Whether RRSP can be registered where the trustee is entitled to be reimbursed from assets of the plan for costs incurred to safeguard the assets

Position: Yes

Reasons: Previous position that the trust can reimburse the trustee for reasonable expenses incurred in its role as trustee

REVENUE CANADA REVENU CANADA

MEMORANDUM NOTE DE SERVICE
DATE November 4, 1999

  TO        Registered Plans Division                                    FROM     Income Tax Rulings and
  À          Bob D'Aurelio                                            		DE          Interpretations Directorate
               Director                                                                		S.E. Thomson
                                                                                                                   952-9853
              Attention:  David Loney

FILE 992878
DOSSIER

SUBJECT:

OBJET: RRSP Trustee fees to safeguard assets

We are responding to your request for our opinion on a request from a trust company to amend several of its specimen RRSP plans to include the following:

" XXXXXXXXXX; "

In our opinion, reasonable expenses incurred by the trustee in the exercise of its fiduciary duty with regard to the plan assets may be reimbursed from the assets of the plan. An amendment to existing RRSP plans to allow for such reimbursements would not, in our view, contravene the registration requirements contained in subsection 146(2) of the Act.

P. Spice
for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate