Section 204.81

Subsection 204.81(1)

Paragraph 204.81(1)(c)

Subparagraph 204.81(1)(c)(vii)

Clause 204.81(1)(c)(vii)(C)

Administrative Policy

6 July 2001 External T.I. 2001-0086775 F - SOCIETE A CAPITAL DE RISQUE

transfer of LSVCC Class A share to the RRSP of transferor’s spouse would not result in recapture of the tax credit

The conditions of registration of a venture capital corporation allow the transfer of a Class A share of the corporation that had been acquired by an individual to the individual’s spouse's RRSP. In particular s. 204.81(1)(c)(vii)(C) allowed the transfer of a Class A share by an individual to the RRSP of which the individual’s spouse was the annuitant and s. 211.8(1), which provides a mechanism for the recovery of the federal tax credit provided for in s. 127.4 in respect of the initial acquisition of a share issued by an LSVCC, would not apply to the transfer of a share in the circumstances described in s. 204.81(1)(c)(vii)(C).