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.
XXXXXXXXXX 961081
March 28, 1996
Dear Sir:
Re: XXXXXXXXXX
This is in reply to your letter of March 20, 1996, and XXXXXXXXXX
wherein you requested an opinion as to whether the above noted bonds would be qualified investments for a trust governed by an RRSP. In a telephone conversation of March 27, 1996 (Francis/XXXXXXXXXX), you have advised that it is your understanding that the shares of the above noted corporation are listed on the London stock exchange.
We do not provide written confirmation with respect to proposed transactions other than as a reply to an advance income tax ruling request submitted in the manner set out in Information Circular 70-6R2. However, we can provide the following general comments.
Pursuant to subsection 146(1) of the Income Tax Act and paragraph 4900(1)(p) of the Income Tax Regulations (the "Regulations"), a qualified investment for an RRSP includes a bond, debenture, note or similar obligation of a corporation the shares of which are listed on a stock exchange referred to in section 3201 of the Regulations. We note that section 3201 of the Regulations includes the London Stock Exchange in the United Kingdom as a prescribed stock exchange for purposes of this provision. Therefore, provided that the shares of the above noted corporation are listed on the London Stock Exhange in the United Kingdom, a bond of the corporation would be a qualified investment for a trust governed by an RRSP. The bonds will be considered to be "foreign property" for purposes of Part XI tax and subject to the provisions contained therein.
We trust our comments will be of assistance to you.
Yours truly,
for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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