30 November 1997 Ruling 9805243 - POOLED FUND TRUST

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:

Pension plans can increase the proportion of foreign property held by holding a portion of their funds directly in foreign property and the balance in units of pooled fund trusts (as defined in regulation 5000(7)) which, in turn, limit foreign holdings to less than 20%. The original proposal was to have a portion of the property presently held in a pooled fund trust which limited its holdings to less than 20% transferred to another pooled fund trust which would hold only foreign property. It is now proposed that this new trust will not be a pooled fund trust. Will the rulings provided still be valid?

Position:

Yes

Reasons:

The rulings originally provided did not rely on the new trust being a pooled fund trust. The fact that it will not be one is therefore immaterial to the rulings provided.

XXXXXXXXXX 980524
XXXXXXXXXX

Attention: XXXXXXXXXX

XXXXXXXXXX, 1998

Dear Sirs:

Re: Advance Income Tax Ruling 972657, dated XXXXXXXXXX, 1997 (the “Ruling Letter”)

This is in reply to your letter of XXXXXXXXXX, wherein you requested confirmation that the income tax rulings provided in the above-noted Ruling Letter will continue to be binding notwithstanding that it is modified as follows:

1. paragraph 15. is deleted and replaced by the following:

“15. By virtue of a trust agreement between the Administrator of the Plans and Trustco, a new trust (the “Foreign Trust”) will be created.”; and

2. all references to the term “Foreign Pooled Fund Trust” will be changed to “Foreign Trust” throughout the Ruling Letter.

Notwithstanding the above changes, we confirm that, subject to the conditions set out therein, the rulings given in the above noted ruling will continue to be binding on the Department in accordance with the practice outlined in Information Circular 70-6R3, dated December 30,1996.

Yours truly,

for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch