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.
Principal Issues:
Can ruling be given that debt of crown corporation will be qualified investment?
Position TAKEN:
Not ruling because no specific transaction but can give opinion that would be qualified per 204(e).
Reasons FOR POSITION TAKEN:
Routine.
XXXXXXXXXX 940980
Attention: XXXXXXXXXX
May 13, 1994
Dear Sirs:
This is in reply to your letter of April 15, 1994 in which you requested an advance income tax ruling on behalf of XXXXXXXXXX As discussed with you (XXXXXXXXXX/Stalker on May 6 and 10, 1994), we cannot provide the requested ruling because no specific proposed transaction has been identified, as set out in paragraphs 5, 6 and 14 of Information Circular 70-6R2. However, we make the following comments.
Bonds, debentures, notes, mortgages, hypothecs or similar obligations of the government of a province or an agent thereof are qualified investments pursuant to subparagraph 204(e)(ii) of the Income Tax Act. This is also stated in Interpretation Bulletin IT-320R2 paragraph 3(a). Accordingly, bonds issued by a provincial crown corporation are qualified investments for trusts governed by registered retirement savings plans (RRSPs), registered retirement income funds (RRIFs) and deferred profit sharing plans (DPSPs).
The foregoing comments are an expression of opinion only and are not binding on the Department.
Your deposit will be returned under separate cover.
Yours truly,
for Director
Financial Industries Division
Rulings Directorate
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