Section 207.05

The shares of an RRSP, which were prohibited investments held by it on 23 March 2011 and for which it made the transitional benefit election in s. 207.05(4), were subsequently exchanged under s. 51 for shares which were not prohibited investments as defined in s. 207.01(1). CRA stated (TaxInterpretations translation):

When the presumptions in subsection 207.01(13) apply to a property…:

• Subsection 207.04(1) is not applicable.
• The property will be a "prohibited investment" and a "transitional prohibited property" subject to the "transitional prohibited investment benefit" concept.
• Subject to paragraphs 207.05(4)(a) and (b), the transitional rule in subsection 207.05(4) can apply to any advantage which is an amount included in the computation of a transitional prohibited investment benefit."