6 January 2009 Internal T.I. 2008-0280111I7 - FX loss on disposition of cash -- summary under Subsection 40(3.3)

A Bermuda CFA (Forco) maintains U.S. dollar deposits and realizes FX losses when it uses such cash to pay a dividend or to make a loan. CRA referred to the statement in the definition of "property" in s. 248(1) that property includes money unless the contrary intention is evident, and then noted that if the stop-loss or superficial loss rules applied, "the suspended losses may be suspended indefinitely if Forco or any affiliated person receives additional $US cash." CRA then stated that "on a purposive reading, supported by policy guidance from the Department of Finance...the cash would not be 'property'....Consequently, those provisions do not apply...."