13 October 1988 Income Tax Severed Letter 5-6675 - [Acquisition of T bills by deferred income plans]

By services, 22 July, 2022
Official title
[Acquisition of T bills by deferred income plans]
Language
English
Document number
Citation name
5-6675
Severed letter type
Miscellaneous
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
657660
Extra import data
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"field_release_date_new": "1988-10-13 08:00:00",
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Main text

XXXX

R. Nanner (613)957-3494

October 13, 1988

Dear Sirs:

This is in response to your letter of September 23, 1988 regarding the acquisition of U.S. dollar denominated Government of Canada treasury bills and other securities by deferred income plans.

We are of the view that an investment which is not a foreign property (within the context of subsection 206(1)) in itself would not be considered foreign property should it be denominated in U.S. dollars. Furthermore, investment income and proceeds of disposition of such investments are not considered to be foreign property provided they are immediately converted to Canadian currency or promptly used to acquire property that is not foreign property.

We hope these comments are of assistance to you.

Yours truly,

for Director Financial Industries Division Rulings Directorate