Paragraph 206(1)(c)
Administrative Policy
20 June 1996 TI 96122
A foreign currency forward contract entered into by a mutual fund with a Canadian resident person would not constitute intangible property situate...
12 April 1995 External T.I. 9501555 - WARRANTS AS FOREIGN PROPERTY FOR RRSP
Except in unusual circumstances, RC would consider a warrant to be an intangible property but not a share or debt instrument. However, further...
30 August 1994 External T.I. 9420165 - FOREIGN PROPERTY-RPP
S.(c) does not apply to any share of the capital stock of a corporation or any bond, debenture, mortgage, hypothec, note or similar obligation....
22 June 1994 External T.I. 9413475 - COMMODITY FUTURES CONTRACTS
Commodity futures contracts on foreign commodities exchanges will be foreign property having a cost amount equal to the sum of the brokerage fees...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 132 - Subsection 132(6) | commodity futures contracts | 13 |
24 February 1994 External T.I. 9401775 - FOREIGN CURRENCY HELD BY REGISTERED PENSION
Although RC recognizes that registered plan receiving foreign currency can avoid the application of Part XI tax if they transfer the funds to...
Paragraph 206(1)(d.1)
Administrative Policy
16 March 2000 External T.I. 2000-0014105 - EXCHANGEABLE SHARE AS FOREIGN PROPERTY
In discussing whether an exchangeable share was foreign property, the Agency stated:
"Where it is determined that the shares of the Canadian...
11 October 1994 Internal T.I. 9417147 - RRSP QUALIFIED INVESTMENT IN DEBENTURES
A debenture of a Canadian corporation may be foreign property where the proceeds of the debenture are used to make real estate loans to a U.S....
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 4900 - Subsection 4900(1) - Paragraph 4900(1)(i) | 44 |
26 August 1994 External T.I. 9421335 - FOREIGN PROPERTY
"It is the Department's view that 'portfolio investments' in the context of paragraph 206(1)(d.1) of the Act means all the securities held by a...
7 September 1989 TI 5-8316
"We have taken the general position that a guarantee given by a non-resident person in respect of a note, bond, or other similar obligation...
86 C.R. - Q.19
"Portfolio investment" generally has its meaning in commercial practice.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 94.1 - Subsection 94.1(1) | 18 |
Paragraph 206(1)(f)
Administrative Policy
6 September 1995 External T.I. 9523295 - U.S. OPTIONS QUALIFIED PROPERTY
A call option listed on a U.S. exchange to acquire shares of a Canadian corporation listed on a prescribed stock exchange in Canada would not be...
Articles
Woods, "Dividend Access Shares", 1991 Canadian Tax Journal, p. 709.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Taxable Preferred Share | 0 |
Paragraph 206(1)(g)
Administrative Policy
2004 Ruling 2004-0060891R3 - Linked notes - foreign property rules
Ruling that the issuance of notes by the Canadian branch of a foreign bank whose principal amount was linked to the return generated on "notional...
Paragraph 206(1)(h)
See Also
Henderson Estate v. M.N.R, 73 DTC 5471, [1973] CTC 636 (FCTD), aff'd 75 D.TC 5332, [1975] C.TC 485 (FCA)
Cattanach J. held that share purchase warrants do not confer rights in or over shares but only the right to have shares issued. The warrants were...
Administrative Policy
2002 Ruling 2002-0134003 - FOREIGN PROPERTY DEBTS OF A TRUST
Ruling that an unsubordinated unsecured interest-bearing loan made to a unit trust would not be foreign property.
2001 Ruling 2001-0076453 - Pre-paid Forward Contract - Mimic - Foreign
Mutual funds enter into cash-settled forward contracts with a counterparty under which they initially pay to the counterparty an amount equal to...
1999 Ruling 9923043 - MUTUAL FUND TRUST USING DERIVATIVES
A newly -established mutual fund invests in Canadian money market securities and enters into Canadian-dollar cash settled forward contracts with...
1999 Ruling 9918323 - XXXXXXXXXX Business of a Commercial Trust
Mutual fund units would not be considered to be foreign property given that more than 80% of the fund's property (in terms of cost amount) was...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - 101-110 - Section 108 - Subsection 108(2) - Paragraph 108(2)(a) | MFT's units are redeemable in cash for lesser of 90% of 10-day trading average and spot, with redemptions in excess of cash cap satisfied with pro rata units and notes of sub trust | 270 |
30 November 1997 Ruling 982725A - DEBT OBLIGATION - FOREIGN PROPERTY
Favourable ruling that where a trust that will be investing in debt instruments and engaging in swap transactions issues notes that are secured by...
30 November 1995 Ruling 9609943 - FORWARD CONTRACT, MARKETABLE SECURITY
Government of Canada bonds posted as initial or variation margin for futures contracts purchased on a foreign exchange will not constitute foreign...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 206 - Subsection 206(2) | 55 | |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Cost Amount | 55 |
18 April 1995 External T.I. 9500895 - POOLED FUND TRUSTS
Foreign currency deposits with a Canadian bank or similar institution will not be foreign property. However, the foreign currency itself will be...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 5000 - Subsection 5000(7) - Pooled Fund Trust | 174 |
27 March 1995 External T.I. 9501185 F - QUALIFIED INVESTMENTS IN AN RRSP
The writing of a covered call option is not subject to the rules governing foreign property as it does not involve the acquisition of a property...
10 March 1995 External T.I. 9500835 - QUALIFIED INVESTMENTS & FOREIGN PROPERTY
Canadian government bonds denominated in a foreign currency are not foreign property. Foreign currency itself would not be foreign property if it...
17 June 1993 TI (Tax Window, No. 32, p. 19, ¶2618)
The writing of a call or put option has no effect on the foreign property rules in s. 206. The writing of the option does not result in the...
17 June 1993 TI (Tax Window, No. 32, p. 19, ¶2617)
A time share in a U.S. property would be foreign property. Accordingly, the tax under s. 206(2) would apply unless the property also was a...
23 May 1991 TI (Tax Window, No. 3, p. 31, ¶1264)
A futures contract on a foreign asset acquired by a deferred income plan is foreign property, and the cost amount of the futures contract will be...
88 CR - Q.59
A mortgage issued by a taxable Canadian corporation which is secured by foreign real property will not be foreign property if the debt obligation...
Paragraph 206(1)(i)
Administrative Policy
1999 Ruling 9928313 - CLONE FUND - ARE UNITS FOREIGN PROPERTY
Favourable foreign property ruling where a mutual fund trust holds units of another mutual fund trust not representing more than 20% of the cost...
1999 Ruling 9915413 - DERIVITIVES TO MIMIC FOREIGN MUTUAL FUNDS
Favourable ruling respecting the establishment of mutual fund trusts that invest in forward contracts of financial institutions where the...
16 August 1994 External T.I. 9418025 - SEGREGATED FUNDS AS TRUSTS FOR ALL OF ACT
A segregated fund is not a trust for purposes of Part XI. Accordingly, an interest therein would not be foreign property.
11 February 1994 Internal T.I. 9314227 - HAA 7234-1 SEG FUND IS A FROEIGN PROPERTY (TRUST)
A segregated fund policy is foreign property because it is deemed by s. 138.1(1) to be an inter vivos trust.
Paragraph 206(1.1)(d)
Administrative Policy
2003 Ruling 2003-0014843 - DEBT OF PARTNERSHIP FOREIGN PROPERTY
A limited partnership ("LPII") with four limited partners that are special-purpose Canadian subsidiaries of other Canadian corporations and a...
12 September 2002 External T.I. 2002-0140935 - FOREIGN PROPERTY - SUBSTANTIAL CDN. PRESENCE
Employees of a limited partnership will be considered to be employees of the majority interest partner for purposes of s. 206(1.1)(d)(iii)(A).
2000 Ruling 1999-0012793 - FOREIGN PROPERTY TAX
Ruling based on s. 206 (1.1)(d)(iii)(B) that a mutual fund trust was able to hold U.S. investments outside its foreign property basket by...
15 July 1997 External T.I. 9716045 - SUBSTANTIAL CANADIAN PRESENCE
"With respect to services relating to the corporation's overhead which cannot be specifically traced to its own or a non-arm's length...
15 May 1997 External T.I. 9710025 - WHETHER "INCORPORATED" IN YEAR AMALGAMATED
Because an amalgamated corporation is not "incorporated" by virtue of an amalgamation under the Canada Business Corporations Act or the Business...
10 April 1997 External T.I. 9703265 - SUBSTANTIAL CANADIAN PRESENCE
If shares are acquired on the date of incorporation and the $250,000 test in s. 206(1.1)(d)(iii)(E) is satisfied later in that calendar year, the...
13 February 1997 External T.I. 9701235 - SUBSTANTIAL CANADIAN PRESENCE
"The term 'services ' ... includes services performed under contract to or for the relevant corporation by an independent underwriting firm in...
15 October 1996 External T.I. 9634015 - SUBSTANTIAL CANADIAN PRESENCE
"Where the corporation in question (the 'relevant corporation') enters into a contract with another corporation or partnership, the expenses paid...
17 October 1996 External T.I. 9634235 - SUBSTANTIAL CANADIAN PRESENCE
A corporation that has no employees in Canada and no office in Canada other than a registered office (i.e., the office of its Canadian lawyers)...
15 October 1996 Administrative Letter 963382A - SERVICES OF OTHER INDIVIDUALS
"The services provided by 'other individuals' need not be of the kind which are normally provided by employees."
Subsection 206(2) - Amount of tax payable
Administrative Policy
2003 Ruling 2003-0041823 - FOREIGN PROPERTY PENSION CORPORATIONS
The establishment by a pension corporation of a subsidiary pension corporation for the purpose of increasing the percentage of underlying foreign...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) | 40 |
7 January 2003 External T.I. 2002-0159065 - SWAP AGREEMENT FOREIGN PROPERTY
The cost amount to a pension fund of a foreign currency swap agreement entered into under ISDA standard terms would be the aggregate of any...
29 January 2002 External T.I. 2001-0105795 - REGISTERED PLANS FOREIGN PROPERTY
Units and shares are considered to be acquired on the date they are delivered, which typically is the settlement date.
29 October 2001 External T.I. 2001-0099135 - RRSP FOREIGN PROPERTY TAX
As it is the position of the Agency that a share traded on a stock exchange will usually be considered to have been disposed of and acquired on...
31 May 1999 External T.I. 9906745 - FOREIGN PROPERTY - COST AMOUNT
Because the delisting or suspension of trading of a share does not cause the taxpayer to cease to own its share, or cause a disposition of its...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Cost Amount | 45 |
17 February 1999 External T.I. 9832275 - RRSP, WRITE-OFF MORTGAGE
There is no provision allowing for the write-off of a mortgage held by an RRSP.
8 June 1998 External T.I. 9806285 - RRSP - FOREIGN PROPERTY & REINVESTED EARNINGS
The cost amount of units of a mutual fund trust that is foreign property include the amount of dividend distributions that have been reinvested in...
30 November 1995 Ruling 9609943 - FORWARD CONTRACT, MARKETABLE SECURITY
The cost amount for purposes of s. 206(2) of investments in exchange-traded futures contracts and forward currency contracts will be equal to the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 206 - Paragraph 206(1)(h) | 25 | |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Cost Amount | 55 |
28 April 1995 External T.I. 9501905 - TRANSFERS TO AND FROM REGISTERED PLANS
The only exception to the rule that transfers of property between registered plans occur at fair market value applies where property in an...
10 March 1992 Memorandum (Tax Window, No. 17, p. 18, ¶1799)
Where shares of a Canadian corporation held in an RRSP are exchanged for shares of a U.S. corporation having a fair market value lower than the...
19 June 1990 TI (November 1990 Access Letter, ¶1533)
Example of the interrelationship of the qualified property and foreign property rules.
11 July 1989 TI (Dec. 89 Access Letter, ¶1063)
There is no provision in the Act to deem a disposition of an investment and a repurchase at the time it becomes a foreign property; therefore, its...
Finance
8 April 1999 Letter of Paul Martin to IFIC:
"Canada has been facing serious challenges of government indebtedness and foreign debt. The foreign...
Subsection 206(2.1)
Administrative Policy
2004 Ruling 2003-0052061R3 - 259(3) Election - 149(1)(o.2) Pension Corporation
A corporation that is an agent of a Province establishes wholly-owned corporations ("Investco's") that will qualify as s. 149(1)(o.2) corporations...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 259 - Subsection 259(3) | 82 |
Subsection 206(4) - Payment of amount collected to RDSP
Administrative Policy
Tax Professionals Mini Round Table - Vancouver - Q. 6 (March 1993 Access Letter, p. 103)
S.206(4) does not apply to the transfer of property from one trustee of a self-administered RRSP to another trustee, as there is no disposition on...
Articles
W. Holmes, M. Colborne, "Foreign Property Rules and Transfer of Assets", Taxation of Executive Compensation and Retirement, Vol. 9, No. 8, April 1998, p. 135
Discussion of the effect on cost amount when property is transferred from an RRSP or RRIF to another such plan.