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:
What is the position of the Department concerning the meaning of marketable security?
Position TAKEN:
Routine
Reasons FOR POSITION TAKEN:
5-943179
XXXXXXXXXX Robert Gagnon
Attention: XXXXXXXXXX
February 10, 1995
Dear Sirs:
Re: Marketable Securities
This is in reply to your letter of December 1, 1995 wherein you requested a technical interpretation concerning the meaning of the term "marketable securities" referred to in subparagraph (a)(i) of the definition of pooled fund trust in subsection 5000(7) of the Income Tax Regulations.
In our view, the term "marketable security" refers generally to a security that is capable of reasonably prompt conversion into cash and that is easily traded because a ready market exists and there are no legal impediments to its trade. It is always a question of fact whether or not a particular security is a marketable security and thus such a question can be answered definitively only after reviewing all the facts.
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
Policy & Legislation Branch
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