1 March 2016 Internal T.I. 2016-0631181I7 - Specified foreign property - mineral rights -- summary under Specified Foreign Property

After noting that 2014-0522241I7 indicated that a right to mine for minerals in a mineral resource outside Canada falls within s. (b)(ii) of “foreign resource property” in s. 248(1), that “for such mineral right to be considered specified foreign property, the right would have to be tangible property, which is understood to include real property such as land and rights issuing out of, annexed to and exercisable within or about land,” and that the mineral right would be considered a tangible property coming within s. (b) of 233.3(1) – “specified foreign property,” CRA stated:

We wish to clarify that a specified foreign property can include inter alia tangible or intangible property…., real property can include… intangible property…[and] a mineral right would likely be considered an intangible property. Therefore…a mineral right situated outside Canada would be considered a specified foreign property pursuant to paragraph (a)… .

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d7 import status
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