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.
Department of Insurance Canada L'Esplanade Laurier 140 O'Connor Street Ottawa, Ontario K2A 0H2
10-1-7-11 J. W. Shaw 593-6937
Attention: R. Vaidyanath
Senior Analyst
Life Insurance Division
November 16, 1953
Re: Trading in Options
This is in reply to your letter of October 3, 1943 in which you requested clarification of the statement in paragraph 14 of our Interpretation Bulletin IT-479 that whether security transactions of certain financial institutions are on income or Capital account may be dependent on "the nature of the account from which the transaction emanates".
From our examination of the material on our files, we have concluded that the comments in paragraph 14 were intended mainly for financial institutions and generally do not apply to life insurance companies.
We have not examined the various accounts which may be maintained by such taxpayers and have no guidelines that the inclusion of a security in a particular account by a life insurer would automatically result in sale proceeds being considered on income or capital account. Our initial reaction to the matter is that all securities transactions by such entities would be on income account unless the facts of the particular transaction indicated otherwise.
Yours truly,
for Director Specialty Corporations Rulings Division Corporate Rulings Directorate Legislation Branch
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© Her Majesty the Queen in Right of Canada, 1983
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© Sa Majesté la Reine du Chef du Canada, 1983
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