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.
24(1) 5-901691
M.P. Baldwin
(613) 957-3499 19(1)
January 25, 1991
Dear Sirs:
This is in reply to your letter of July 20, 1990 asking if the proceeds on a life insurance policy would be considered substituted property such that the attribution rules would apply.
Based on the facts given in your letter and on a subsequent
telephone conversation (Baldwin 19(1) Is our opinion that
the proceeds on the life insurance policy would be considered to be
substituted property. It is also our opinion, assuming that the
grandchildren are minors, that subsection 74.1(2) of the act would
apply to attribute any non-business income or loss on the cash
proceeds or any property substituted for the cash proceeds.
We trust our comments will be of assistance to you.
Yours truly,
for Director Financial Industries Division Rulings Directorate
000042
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