CRA finds that the holder of an electronic certificate to unallocated bullion represents beneficial ownership of the indicated quantity of bullion

The resident taxpayer, like other clients of a corporation resident in Canada, purchased Holdings evidenced by electronic records provided online to the clients. These Holdings represented a quantity of precious metals held by or on behalf of the client and stored in a vault situated outside Canada.

The taxpayer had the option to choose between Holdings in respect of registered bars or non-registered bars. In the case of non-registered metals, the Holding was stated to represent the taxpayer's proportionate, undivided interest in the weight of the metal.

After determining that the registered Holdings constituted specified foreign property under para. (b) of the specified foreign property definition as tangible property situated outside Canada, CRA further concluded that the Holdings in respect of non-registered metals constituted specified foreign property under para. (h) of that definition as an interest in tangible property situated outside Canada. CRA stated:

Where the Holding reflects non-registered metal, the Taxpayer holds a proportionate undivided interest in the weight of the metal situated abroad … [and] also bears the core attributes of beneficial ownership (control over sale/delivery, exposure to price risk, entitlement to proceeds).

… [T]he Holding is evidence of the Taxpayer’s ownership interest in the non-registered metal.

In that regard, it can be said that the Taxpayer’s proportionate undivided interest in the weight of non-registered metal that is situated in a vault outside Canada is the Taxpayer’s interest in tangible property situated outside Canada, and consequently may be considered an interest in a property that is specified foreign property.

This finding (albeit based on representations made by the taxpayer) may contradict the statement in 7-3237 that the Department had:

previously determined that a silver or gold certificate is an obligation stating the issuer's liability to deliver upon demand the bullion in exchange for the certificate. Accordingly, the holder possesses merely personal rights, (rights in personam), enforceable against the issuer, rather than real rights (rights in rem) in the commodity itself.

See also Goldcorp.

Neal Armstrong. Summary of 23 September 2025 External T.I. 2025-1064831E5 under s. 233.3(1) – specified foreign property – para. (b), para. (h).