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.
Dear Mr. Mavor:
Re.: Your file C-311
This is to acknowledge your letter of November 10, 1983 concerning bank deposits, I apologize for the delay in replying.
We agree with your interpretation to the effect that a debt which is properly booked under any of liability Items 1, 2 or 3 of Schedule J of the Bank Act should be considered as an amount “deposited with the bank”. All such liabilities are generally considered deposit liabilities from our standpoint and I cannot see why they should be considered differently for the purposes of clause 212(1)(b)(iii)(D) of the Income Tax Act. In the case of a bank, all such “deposit liabilities” are ranking equally and represent aunts deposited with the bank in one form or the other.
As for bearer notes, we require that they be booked as deposit liabilities. This treatment applies whether the note is considered a “bearer deposit note” or a standard promissory note bearing no interest and payable to bearer on a specified date. In our view, all such notes represent amounts deposited with the bank. The reference to the fact that some of these notes are not evidencing deposits insured under the CDIC Act refers only to the fact that those are not CDIC insured because they are payable in a foreign currency. The fact that they are not CDIC insured deposits does not mean that they are not deposits.
I trust that the above comments will be useful.
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