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:
Does deeming provision in 138.1(1) deem a segregated fund to be a trust for all purposes of the Act.
Position TAKEN:
No
Reasons FOR POSITION TAKEN:
5-941802
XXXXXXXXXX D. Duff
Attention: XXXXXXXXXX
August 16, 1994
Dear XXXXXXXXXX:
This in reply to your letter of July 13, 1994, concerning our position that a segregated fund policy, within the meaning of subsection 138.1(1) of the Income Tax Act ("Act"), was a trust for the purposes of Part XI of the Act, and, consequently, an interest therein was foreign property for the purposes of Part XI.
As a result of a review of this position we no longer consider that, by virtue of the deeming provisions in subsection 138.1(1) of the Act, a segregated fund is a trust for the purposes of Part XI. Accordingly, an interest therein would not be foreign property for the purposes of Part XI.
We trust this is satisfactory.
Yours truly
for Director,
Financial Industries Division
Rulings Directorate
Policy and Legislation Branch
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