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:
Whether 206(1)(c) apply to a share or a debt issued by a Canadian corporation?
Position TAKEN:
No
Reasons FOR POSITION TAKEN:
It is the Department's view that "other than any property described in paragraph..." refers to "any share of the capital stock of a corporation" in paragraph 206(1)(d) and "any bond, debenture,
mortgage, hypothec, note or similar obligation" in paragraph 206(1)(g).
5-942016
XXXXXXXXXX Robert Gagnon
Attention: XXXXXXXXXX
August 30, 1994
Dear Sirs:
Re: Subsection 206(1)
This is in reply to your letter of July 29, 1994 wherein you requested a technical interpretation concerning subsection 206(1) of the Income Tax Act ("Act").
Unless as otherwise stated all references to statute are to the Act S.C. 1970-71-72,c.63 as amended consolidated to June 10, 1993.
It is the Department's view that paragraph 206(1)(c) of the Act does not apply to any share of the capital stock of a corporation or any bond, debenture, mortgage, hypothec, note or similar obligation. Paragraphs 206(1)(d) to (g) of the Act cover the situations where shares or bonds can be a foreign property under subsection 206(1) of the Act. Accordingly, the fact that a foreign custodian acting as an agent for a trust governed by a registered pension plan, holds outside Canada share certificates or evidences of debts issued by a Canadian corporation (as defined in paragraph 89(1)(a) of the Act), is not in and by itself relevant for the purposes of paragraph 206(1)(c) of the Act.
The foregoing opinions are not rulings and, in accordance with the guidelines set out in Information Circular 70-6R2 dated September 28, 1990, are not binding on the Department.
We trust our comments will be of assistance to you.
Yours truly,
for Director
Financial Industries Division
Rulings Directorate
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 1994
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 1994
Email this Content