CRA confirms that foreign currency dispositions under s. 39(1.1) include FX bank deposit conversions

CRA confirmed that the phrase “dispositions of currency other than Canadian currency” in s. 39(1.1) was not restricted to dispositions of foreign-currency banknotes and coins, and extended to “dispositions of foreign currency held by an individual in a chequing or current deposit account at a financial institution, to the extent that the individual is entitled to withdraw the currency on deposit at any time, convert it into another currency at any time, or use it to make a purchase or a payment at any time.”

Neal Armstrong. Summary of 19 January 2024 External T.I. 2020-0865921E5 F under s. 39(1.1).