Principal Issues: Whether 1. a digital currency (e.g. Bitcoins) and 2. a foreign partnership holding digital currency (i.e. Bitcoins) are "specified foreign property" as defined in subsection 233.3(1).
Position: 1. Yes and 2. Yes, to the extent the partnership is not a "specified Canadian entity" as defined in subsection 233.3(1).
Reasons: 1. Digital currency is funds or intangible property and "specified foreign property" includes funds or intangible property held outside of Canada. 2. Paragraph (e) in the definition of "specified foreign property" includes an interest in a partnership that owns or holds specified foreign property and paragraph (o) of the same definition excludes an interest in a partnership that is a specified Canadian entity.