[Eric]

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.

 

[Eric]

Thanks OhGreatGuru, however the article you are referring to is from 2007. The rules have changed last summer as the government is trying to close some loopholes.

By the way, bonds have a quoted price on a daily basis.