XXXX
F. Francis (613)957-3498
Attention: XXXX
September 24, 1987
Dear Sirs:
In reply to your letter of September 4, 1987, we concur with your position that a bond, debenture, mortgage, hypothec, note or similar obligation of, or issued by, a person resident in Canada, whether or not that person is a Canadian bank, does not constitute "foreign property" as that term is defined under subsection 206(1) of the Income Tax Act, whether such property or the evidence of ownership thereof is physically held and administered at a location outside Canada and whether such obligation is issued through a Canadian or foreign branch of such person.
As you indicate in your letter, it is a question of fact whether a particular obligation is a bond, debenture, mortgage, hypothec, note or similar obligation.
The above comments are an expression of opinion only and are not binding on the Department. They are, however, our best interpretation of the relevant legislation as it applies generally and we trust that they are of assistance to you.
Yours truly,
for Director Financial Industries Division Rulings Directorate Legislative and Intergovernmental Affairs Branch