9 December 1992 External T.I. 9234495 F - Five Year Periods

24(1)

Attention:  19(1)

December 9, 1992

Dear Sirs:

This is in reply to your letter dated November 12, 1992 wherein you requested our opinion on two references in the Income Tax Act (the "Act") to certain five year periods.

We confirm your interpretation that the fifth anniversary of the date of issuance of a share falls within the "period not exceeding five years, from the date of its issuance" referred to in paragraph (e) of the definition of "term preferred share" in subsection 248(1) of the Act.

We can also confirm that, with respect to subparagraph 212(1)(b)(vii) of the Act, taxpayers are entitled to rely on the published position which is stated in paragraph 4 of the Interpretation Bulletin IT-361R2.

While we hope our comments are of assistance to you they do not constitute an advance income tax ruling and therefore are not binding on the Department in respect of a specific situation.

Yours truly,

Section ChiefFinancial InstitutionsFinancial Industries DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch