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 Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
RULINGS DIRECTORATE
CORRESPONDENCE SUMMARY
DOCUMENT TYPE:
Opinion
Principal Issues:
Definition Marketable Security
Position TAKEN:
Question of Fact
Reasons FOR POSITION TAKEN:
previous opinions
LEGAL:
FINANCE OPINION:
JURISPRUDENCE:
RCT PUBLICATIONS:
HAA NUMBER:
XXXXXXXXXX 5-940116
Attention: XXXXXXXXXX
January 26, 1994
Dear Sirs:
Re: Hedging Transactions
We are writing in response to your letter of January 12, 1994 in which you asked for our opinion as to whether a "foreign exchange forward contract" would be considered a "marketable security" for purposes of the Income Tax Act (the "Act"). In this regard we offer the following comments.
The Department has taken the view that it is a question of fact whether or not any particular investment is a marketable security. Generally, a particular investment could be considered a marketable security if it can be converted readily into cash and it can easily be traded because a ready group of buyers exists and there is no legal or other impediments to its sale.
We trust our comments will be of assistance to you.
Yours truly,
for Director
Financial Industries Division
Rulings Directorate
Legislative and Intergovernmental
Affairs Branch
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© Her Majesty the Queen in Right of Canada, 1994
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© Sa Majesté la Reine du Chef du Canada, 1994
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