Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues: Whether shares listed on NASDAQ are foreign property.
Position: Question of fact.
Reasons: Need more information to ascertain and then could respond only in the form of an advance ruling request.
XXXXXXXXXX 1999-001493
G. Kauppinen
March 1, 2000
Dear XXXXXXXXXX:
Re: Definition of Foreign Property
This is in reply to your facsimile of December 17, 1999, wherein you asked whether the shares of a specific corporation listed on the National Association of Securities Dealers Automated Quotation System ("NASDAQ") constitute "foreign property" for purposes of the tax (the "Part XI tax") on excess foreign content in respect of investments held by a registered retirement savings plan ("RRSP").
The Canada Customs and Revenue Agency does not provide opinions as to whether or not the shares of a particular corporation are, or are not, foreign property if held by an RRSP. For general information on this topic you may wish to refer to Interpretation Bulletin 412R2 (Foreign Property of Registered Plans) - copies are available from your tax services office or at the Canada Customs and Revenue Agency web site http://www.ccra-adrc.gc.ca/formspubs/menu-e.html. It may also be advisable to contact the corporation directly regarding the status of their shares for purposes of the Part XI tax.
We trust our comments are of assistance.
Yours truly,
Patricia Spice
for Director
Financial Industries Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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