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.
XXXXXXXXXX 960409
February 29, 1996
Dear Sir:
Re: South African Eskom Bonds and RRSPs
This is in reply to your letter of January 17, 1996, wherein you requested an opinion as to whether the above noted bonds would be qualified investments for a trust governed by an RRSP.
We do not provide written confirmation with respect to proposed transactions other than as a reply to an advance income tax ruling request submitted in the manner set out in Information Circular 70-6R2. However, we can provide the following general comments.
Generally speaking, only certain bonds and similar obligations issued by corporations are qualified investments for a trust governed by an RRSP, including:
(a)a bond, debenture, note, or similar obligation of a corporation the shares of which are listed on a prescribed stock exchange in Canada;
(b)a bond, debenture, note or similar obligation of a corporation the shares of which are listed on a prescribed stock exchange outside of Canada; and
(c)certain bonds, debentures, notes or similar obligations of Canadian corporations.
We note that the prescribed stock exchanges outside of Canada in section 3201 of the Income Tax Regulations do not include any stock exchanges in South Africa. Consequently, the above-noted bonds would not be qualified investments for a trust governed by an RRSP.
We trust our comments will be of assistance to you.
Yours truly,
for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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