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.
| 19(1) |
File No. 5-8348 |
| |
A.B. Adler |
| |
(613) 957-8962 |
July 24, 1989
Dear Sirs:
This is in reply to your letter dated July 12, 1989 in which you requested our views concerning the application of certain provisions of the Income Tax Act ("Act") and section 4900 of the Income Tax Regulations ("Regulations") to four questions raised by you.
In our view the fact that the annuitant under an RRSP does not deal at arm's length with Pubco in question 1, Opco in question 2 or any of the corporations described in question 3 would not, in itself, deny the bonds, debentures, notes or similar obligations qualifies investment treatment under subparagraph 146(1)(g)(ii) of the Act or paragraph 4900(1)(i) of the Regulations, as the case may be.
Further, we concur with your view that where in fact the shares of a corporation issuing such obligations may not reasonably be considered to derive their value, directly or indirectly, primarily from portfolio investments in foreign property the investments described in your questions 1 to 3 would not be foreign property be reason of paragraph 206(1)(d.1) of the Act.
We trust that our comments are sufficient for your purposes.
Yours truly,
for DirectorFinancial Industries DivisionRulings Directorate
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© Sa Majesté la Reine du Chef du Canada, 1989
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