2002 Income Tax Severed Letter 2002-0170551 - Derivatives-Foreign property rules

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 CCRA.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ADRC.

Principal Issues: Request for amendments to ruling 2002-016141.

Position: Amendments accepted.

Reasons: Amendments requested have no impact as to the rulings given.

XXXXXXXXXX 							2002-017055

XXXXXXXXXX, 2002

Dear XXXXXXXXXX:

Re: XXXXXXXXXX Supplementary Advance Income Tax Ruling

This is in reply to your letter of XXXXXXXXXX, and is supplemental to our advance income tax ruling number 2002-016141 dated XXXXXXXXXX, 2002 (the "Ruling").

As a result of your letter, the following changes will be made to the Ruling:

1. Amend paragraph 25 so that it reads as follows:

"The RSP Funds will treat payments made and received under a Bank Deposit as being on income account."

2. Add the following paragraph after paragraph 22:

"The Bank will pay the fees of the SPT Trustee for acting as trustee of the SPT and the day-to-day expenses of the SPT (collectively the "Expenses"). If, on any anniversary date of the Master Deposit Agreement, the total amount of Bank Deposits thereunder is less than $XXXXXXXXXX in its own capacity, will be required to reimburse the Bank for the Expenses paid in the twelve months ending on the anniversary date. Such reimbursement will not be charged to any of the RSP Funds."

3. In Ruling A, delete "ITA" and insert "Act".

4. Amend Ruling F so that it reads as follows:

"Section 18.1 of the Act will not apply in respect of an amount payable by the SPT to the Bank on the termination of a Corresponding Swap."

Notwithstanding the above changes, we confirm that the Ruling will continue to be binding on the Canada Customs and Revenue Agency in the manner described therein, provided the proposed transactions are completed on or before XXXXXXXXXX.

Yours truly,

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