I would like to swap a large amount of Bell Bonds from my investment account into my RRSP. BMO, iTrade and TD do not do these swaps anymore.
Reading the government rulings at
http://www.cra-arc.gc.ca/gncy/bdgt/2011/qa13-eng.html#_Toc288625900
I see that only 'abusive' swaps are forbidden.
I wonder if swapping bonds would be considered abusive. I would like to avoid tax on the interest, but I do not see this as abusive. Is it?
Is there a financial institution that would allow this swap?
I have considered selling the bonds and then buying them back in the RRSP. However, it seems that even if I was willing to pay the 3 to 4% spread, the government does not allow the same person to buy back bonds that he has just sold.
I don't understand why these simple transactions are considered abusive.
Reading the government rulings at
http://www.cra-arc.gc.ca/gncy/bdgt/2011/qa13-eng.html#_Toc288625900
I see that only 'abusive' swaps are forbidden.
I wonder if swapping bonds would be considered abusive. I would like to avoid tax on the interest, but I do not see this as abusive. Is it?
Is there a financial institution that would allow this swap?
I have considered selling the bonds and then buying them back in the RRSP. However, it seems that even if I was willing to pay the 3 to 4% spread, the government does not allow the same person to buy back bonds that he has just sold.
I don't understand why these simple transactions are considered abusive.