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.
We are attaching a copy of a recent letter to XXX in connection with the above provision as discussed, when paragraph 108(1)(d) was amended in 1975 to exclude a trust that is a foreign affiliate, it appears that a corresponding amendment was not made elsewhere to give a Canadian taxpayer a cost base to the extent of his original capital interest in this type of a trust. We feel that serious consideration should be given to an amendment to cover this deficiency in light of the fact that there is a cost base provided for in the domestic trust situation and furthermore, the Act provides a cost base to a Canadian taxpayer who has an interest in a foreign affiliate subject to the FAPI rules outside section 94.
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© Her Majesty the Queen in Right of Canada, 1984
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© Sa Majesté la Reine du Chef du Canada, 1984
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