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.
Principal Issues:
Are "special warrants" considered marketable securities for purposes of 108(2)(b)?
Position:
No
Reasons:
prior wording of reg. 5000(7) parallels wording in 108(2)(b); Finance saw fit to amend the definition of pooled fund trust because they were of the opinion that "special warrants" & other such convertibles did not fit the category of marketable securities; therefore no ruling given ; discussions with Finance indicate amendment to 108(2)(b) is coming that will mirror the changes made to ss. 5000(7) of the Regulations; therefore decline to rule amendment to Act required.
964172
XXXXXXXXXX L. Holloway
Attention: XXXXXXXXXX
March 12, 1997
Dear Sirs/Mesdames:
Re: XXXXXXXXXX
We are writing in reply to your letters of December 16, 1996 and January 29, and February 28, 1997, in which you requested a ruling that "special warrants" could be considered to be "marketable securities" for purposes of subparagraph 108(2)(b)(iii) of the Income Tax Act. As discussed with you previously (Murphy/XXXXXXXXXX) the Department of Finance amended regulation 5000(7) so that the purchase of special warrants by a fund would fall within the list of qualified investments found in the definition of pooled fund trust. This legislative change was initiated by certain industry participants whom themselves were of the opinion that special warrants were not marketable securities. We understand that an amendment similar to that made to regulation 5000(7) is also being recommended in respect of subparagraph 108(2)(b)(iii). Accordingly, as agreed in our conversation of March 6, (Murphy/XXXXXXXXXX), we are closing this file. Our bill for time spent to date will be sent under separate cover.
Yours truly,
T. Murphy
for Director
Resources, Partnerships
and Trusts Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 1997
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 1997
Email this Content