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.
XXX
This is further to my letter of April 14, 1982 and in reply to your letter of March 10, 1982 concerning the eligibility of Certificates of Deposit for the purposes of the exemption contained in subparagraph 212(1)(b)(iv) of the Income Tax Act (the Act).
I am pleased to inform you that senior officials of this Department have completed their review of the subject matter as a result of which I am able to confirm that a Certificate of Deposit issued by a bank is considered to constitute a “bond, debenture or similar obligation” for the purposes of subparagraph 212(1)(b)(iv) of the Act. Accordingly, interest paid or credited in respect of a person holding a certificate of exemption referred to in that subparagraph, that is in force on the day the amount is paid or credited, is not subject to tax under Part XIII of the Act.
The above interpretation is consistent with the initial interpretation of this Department on this subject, to which you have referred. I trust that you will inform the members of your 19(1) of the content of this letter and thank you for your interest in this matter.
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© Her Majesty the Queen in Right of Canada, 1982
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© Sa Majesté la Reine du Chef du Canada, 1982
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