Revenue Canada Taxation Head Office
G. Kauppinen (613)957-3495
April 28, 1988
Dear Sirs:
Re: Mutual Fund Trusts
This is in reply to your letter dated November 16, 1987 regarding subsection 132(6) of the Income Tax Act (Act) and the definition of "qualified investment" pursuant to subsection 4900(1) of the Income Tax Regulations ("Regulations").
It is our view that a valid election under subsection 132(6) of the Act in respect of a mutual fund trust's first taxation year will cause all units of the mutual fund trust purchased in that particular taxation year, whether before or after the date of the election, to be qualified investments within the definition contained in subsection 4900(1) of the Regulations.
We trust the foregoing is of assistance.
Yours truly,
for Director Financial Industries Division Rulings Directorate