7 May 1999 External T.I. 9813695 - U.K. PENSION PLAN

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.

981369
	xxxxxxxxxx	G. Middleton
(613) 957-2122
May 7, 1999

Dear Sir:

This is in reply to your letter and the letter from XXXXXXXXXX and is further to our telephone conversations between Middleton/XXXXXXXXXX and Laurikainen/XXXXXXXXXX concerning investments made in Canadian securities by your Self Administered Pension Plan (SAPP), a U.K. pension plan, through a Canadian broker such as XXXXXXXXXX.

Since the situation described in your letters involves contemplated transactions and identifiable taxpayers, we would like to bring your attention paragraph 22 of Information Circular 70-6R3 dated December 30, 1996 issued by Revenue Canada Taxation (a copy of which is herewith enclosed) wherein it is stated that when a requested interpretation relates to a specific proposed transaction, a taxpayer should request an advance income tax ruling rather than an opinion. The procedures for requesting an advance income tax ruling are set out in paragraph 16 of the said circular. However, as discussed in our conversation and as set out in paragraph 15(j) of the Information Circular 70-6R3, we may refuse to rule when a matter on which a determination is requested is primarily one of fact and all of the pertinent facts cannot be established at the time of the request for the ruling, such as issues involving residence, carrying on business, etc.

We have enclosed Information Circular 76-12R4 entitled "Applicable Rate of Part XIII Tax on Amounts Paid or Credited to Persons in Treaty Countries", Information Circulation 77-16R4 entitled "Non Resident Income Tax" and Information Circular 72-17R4 entitled "Procedures concerning the disposition of Taxable Canadian Property by Non-Residents of Canada - Section 116" which provide comments that may be relevant to your particular situation. For example, paragraphs 3, 4 and 5 of Information Circular 76-12R4 contain comments on beneficial ownership and payments to agents and nominees.

We trust the comments in the enclosed Information Circulars will be of assistance to you.

Yours truly,

for Director
Reorganizations and International Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch