,canada ,cu/oms                       #a
& ,rev5ue ,ag5cy

          ,9t]pret,n ,bullet9
    
,numb]3 ,,it-#chg;,r#b 7,3solidat$7
,date3 ,see ,bullet9 ,revi.ns sec;n
,subject3 ,9come ,tax ,act--,m1n+ (
  8,id5tical ,prop]ties0
,ref];e3 ,sec;n #dg 7al sec;n #dg.a1
  subsec;ns #ach7#aa.a7 & #bdh7#ab72 &!
  def9i;n ( 8sup]ficial loss0 9 sec;n
  #ed (! ,9come ,tax ,act 7! ,act72 &
  subsec;ns #bf7#h71 7#h.a7 & 7#h.b7 (!
  ,9come ,tax ,applic,n ,rules1 #aiga
  7,,itar77

  ,late/ ,revi.n--,p>agraph #g
  ,at ! ,canada ,cu/oms & ,rev5ue ,ag5cy
7,,ccra71 we issue 9come tax 9t]pret,n
bullet9s 7,,it's7 9 ord] 6provide
te*nical 9t]pret,ns & posi;ns reg>d+
c]ta9 provi.ns 3ta9$ 9 9come tax law4
,due 6_! te*nical nature1 ,,it's >e us$
prim>ily 0\r /aff1 tax speciali/s1    #a
           ,,it-#chg;,r#b7,c7        a#a
& o!r 9dividuals :o h an 9t]e/ 9 tax
matt]s4 ,= ^? r1d]s :o pref] a less
te*nical explan,n (! law1 we (f] o!r
public,ns1 s* z tax guides & pamphlets4
  ,:ile ! -;ts 9 a "picul> p>agraph 9 an
,,it may relate 6provi.ns (! law 9 =ce
at ! "t !y 7 made1 s* -;ts >e n a
sub/itute =! law4 ,! r1d] %d1 "!=e1
3sid] s* -;ts 9 li<t (! relevant
provi.ns (! law 9 =ce =! "picul> tax,n
ye> 2+ 3sid]$1 tak+ 96a3.t ! e6ect ( any
relevant am5d;ts 6^? provi.ns or
relevant c\rt deci.ns o3urr+ af ! date
on : ! -;ts 7 made4
  ,subject 6! abv1 an 9t]pret,n or
posi;n 3ta9$ 9 an ,,it g5],y applies z
(! date on : x 0 publi%$1 un.s o!rwise
specifi$4 ,if "! is a subsequ5t *ange 9
t 9t]pret,n or posi;n &! *ange is
b5eficial 6taxpay]s1 x is usu,y e6ective
= future assess;ts & reassess;ts4 ,if1
on ! o!r h&1 ! *ange is n fav\ra#
6taxpay]s1 x w norm,y 2 e6ective =!
curr5t & subsequ5t tax,n ye>s or =    #b
           ,,it-#chg;,r#b7,c7        b#a
transac;ns 5t]$ 96af ! date on : ! *ange
is publi%$4
  ,if y h any -;ts reg>d+ matt]s 4cuss$
9 an ,,it1 pl1se s5d !m to3

  ,manag]1 ,te*nical ,public,ns &
    ,projects ,sec;n
  ,9come ,tax ,rul+s ,directorate
  ,policy & ,legisl,n ,bran*
  ,canada ,cu/oms & ,rev5ue ,ag5cy
  ,ottawa ,,on ,k#a;,a #j;,l#e

  ,mo/ ( \r public,ns >e availa# on \r
,web site at3 _+www.ccra.gc.ca_:
  ,? v].n is only availa# electronic,y4








                                      #c
                 ,3t5ts              c#a
    
,applic,n
,summ>y
,4cus.n & ,9t]pret,n
  ,g5]al 7p>agraphs #a-c7
  ,gold ,bullion & ,gold ,c]tificates
    7p>agraph #d7
  ,bonds1 ,deb5tures1 ,notes1 etc4
    7p>agraph #e7
  ,escr[$ ,%>es 7p>agraph #f7
  ,3v]ti# ,%>es 7p>agraph #g7
  ,-mod;y ,futures ,3tracts
    7p>agraph #h7
  ,9dex$ ,securities 7p>agraph #i7
  ,life ,9sur.e ,corpor,ns
    7p>agraphs #aj-aa7
  ,o!r ,public,ns 7p>agraph #ab7
,bullet9 ,revi.ns

               ,applic,n
    
  ,? bullet9 is a 3solid,n (! foll[+3
    --,,it-#chg;,r#b dat$ ,july #ad1
      #aihi2 &                        #d
           ,,it-#chg;,r#b7,c7        d#a
    --subsequ5t am5d;ts "!to4
  ,= fur!r "picul>s1 see ! 8,bullet9
,revi.ns0 sec;n ne> ! 5d ( ? bullet94

                ,summ>y
    
  ,special rules >e applica# 6det]m9e !
adju/$ co/ base ( id5tical prop]ties =
purposes ( det]m9+ any capital ga9 or
loss on _! 4posi;n4 ,? bullet9 4cusses !
m1n+ ( id5tical prop]ties z well z a
numb] ( k9ds ( s* prop]ties4

          ,4cus.n & ,9t]pret,n
    
        ,g5]al 7p>agraphs #a-c7
    
#a4 8,id5tical prop]ties01 =! purposes (
  subsec;n #dg7#a71 ! def9i;n (
  8sup]ficial loss0 9 sec;n #ed (! ,act
  & subsec;n #bf7#h7 (! ,,itar 7&
  subject 6! provi.ns ref]r$ 6in
  p>agraph #e & p>agraphs #i 6#aa71 >e
  prop]ties : >e ! same 9 all         #e
           ,,it-#chg;,r#b7,c7        e#a
  mat]ial respects1 s t a prospective
  buy] wd n h a pref];e = "o z oppos$
  6ano!r4 ,6det]m9e :e!r prop]ties >e
  id5tical1 x is nec 6-p>e ! 9h]5t
  qualities or ele;ts
--------------------------------------#b
  : give ea* prop]ty xs id5t;y4 ,s* a
  det]m9,n is a "q ( fact : m/ 2 decid$
  on ! basis (! relevant details 9 ea*
  situ,n4
#b4 ,! id5tical nature ( prop]ties is n
  a6ect$ 0! fact t [n]%ip is evid;ed
  0m1ns ( c]tificates : may repres5t
  di6]5t quantities (! prop]ties1 z 9 !
  case ( %>e c]tificates or gold
  c]tificates4
#c4 ,two prop]ties : >e o!rwise id5tical
  d n c1se 6be s m]ely 2c "o is subject
  6a *>ge or o!r ext]nal 3di;n : may
  a6ect xs price &! o!r is n1 provid$ !
  ext]nal 3di;n does n *ange any (!
  3/itu5t ele;ts (! "picul> prop]ty
  7e4g41 prov9cial retail sales tax1
  -mis.n fees74                       #f
         ,gold ,bullion & ,gold      a#b
       ,c]tificates 7p>agraph #d7
    
#d4 ,gold bullion & gold c]tificates 7or
  bullion & c]tificates (! same preci\s
  metal7 >e 3sid]$ 0! ,canadian ,cu/oms
  & ,rev5ue ,ag5cy 7,,ccra7 7#a7 6be
  id5tical prop]ties4 ,fur!rmore1 x is !
  ,,ccra's 7#b7 view t a "picul>
  c]tificate &! bullion 6: x relates >e
  ! same prop]ty1 )! result t an ex*ange
  (a c]tificate = bullion or bullion =a
  c]tificate w n 2 3sid]$ a 4posi;n4

7#a7 & 7#b7 ,correc;n ,7,septemb] #ab1
  #bjjb7'

      ,bonds1 ,deb5tures1 ,notes1
           etc4 7p>agraph #e7
    
#e4 ,pursuant to
  7a7 subsec;n #bdh7#ab7 (! ,act = tax,n
    ye>s & fiscal p]iods -m5c+ af ,june
    #ag1 #aihg t 5d af #aihg1
                                      #g
           ,,it-#chg;,r#b7,c7        b#b
  7b7 subsec;n #dg7#c7 (! ,act = o!r
    tax,n ye>s & fiscal p]iods1 &
  7c7 subsec;n #bf7#h.b7 (! ,,itar1
  
  "o bond1 deb5ture1 bill1 note or o!r
  simil> oblig,n issu$ 0a debtor is
  deem$ 6be id5tical 6ano!r s* oblig,n
  issu$ 0! same debtor1 provid$ t bo? >e
  id5tical 9 respect ( all "rs atta*+
  "!to1 b )\t ref];e 6! pr9cipal am.t (
  s* oblig,n4 ,/ripp$ bonds >e id5tical
  6o!r /ripp$ bonds (! same issue b !y
  >e n 3sid]$ 6be id5tical 6bonds (!
  same issue f : ! 9t]e/ c\pons h n be5
  deta*$4

      ,escr[$ ,%>es 7p>agraph #f7
    
#f4 ,%>es (! capital /ock (a corpor,n :
  >e subject 6an escr[ agree;t s z
  6prev5t ! [n] "!( f d1l+ 9 !m 7escr[$
  %>es7 & %>es (! same class & k9d (!
  capital /ock (! same corpor,n : >e n s
  re/rict$ 7free %>es7 >e 3sid]$      #h
           ,,it-#chg;,r#b7,c7        c#b
  6be id5tical prop]ties1 not)/&+ t !
  value (! escr[$ %>es may 2 less ?an !
  value (! free %>es1 provid$ t
  7a7 ! escr[$ %>es h be5 issu$ 0!
    corpor,n1 &
  7b7 ! escr[ agree;t re/ricts only ! "r
    ( sale (! escr[$ %>es4
  
  ,%>es : >e m]ely allott$ 3di;n,y wd n
  2 id5tical 6free or escr[$ %>es : h
  be5 issu$4

      ,3v]ti# ,%>es 7p>agraph #g7
    
#g4 ,%>es ( two di6]5t classes (!
  capital /ock (a corpor,n >e n id5tical
  if !y d n h ! same 9t]e/s1 "rs &
  privileges4 ,= example1 ,class ;,a
  -mon %>es (a corpor,n & ,class ;,b
  -mon %>es (! same corpor,n : >e ! same
  9 all respects1 except t ! ,class ;,a
  %>es >e vot+ &! ,class ;,b %>es >e
  non-vot+1 >e n 3sid]$ 6be id5tical
  s9ce !y provide = di6]5t "rs4       #i
           ,,it-#chg;,r#b7,c7        d#b
  ,9 "s cases1 ! hold]s ( %>es ( "o
  class >e 5titl$ 6ex*ange !m = %>es (!
  o!r class4 ,= example1 ,class ;,x -mon
  %>es (a corpor,n & ,class ;,y -mon
  %>es (! same corpor,n >e ! same 9 all
  respects1 except t ! ,class ;,x %>es
  >e vot+ &! ,class ;,y %>es >e non-
  vot+1 & t ! hold]s (! ,class ;,x %>es
  >e 5titl$ 6ex*ange !m = ,class ;,y
  %>es4

  ,( c\rse1 ": a taxpay] ex*anges ,class
  ;,x %>es = ,class ;,y %>es1 ! ,class
  ;,y %>es acquir$ on ! 3v].n >e
  id5tical 6any ,class ;,y %>es alr held
  or subsequ5tly acquir$ 0! taxpay]4

  ,fur!rmore1 x %d 2 not$ t ! "r or
  privilege ( 3v].n or ex*ange atta*$ 6!
  ,class ;,x %>es 3/itutes a "r 6acquire
  a prop]ty & t s* a "r is deem$ 6be a
  prop]ty t is id5tical 6! ,class ;,y
  %>es =! purpose (! def9i;n (
  8sup]ficial loss0 9 sec;n #ed (!   #aj
           ,,it-#chg;,r#b7,c7        e#b
  ,act4 ,"!=e1 ! exi/;e (a "r or
  privilege ( 3v].n or ex*ange atta*$
  6%>es (! capital /ock (a corpor,n may1
  9 "s circum/.es1 result 9 a taxpay]'s
  loss f a 4posi;n (a %>e 2+ 3sid]$ a
  8sup]ficial loss0 )9 ! m1n+ ( sec;n
  #ed (! ,act4 ,= example1 assume t an
  9dividual 7o!r ?an a tru/7 [ns ,class
  ;,y %>es4 ,! 9dividual 4poses ( 8 or
  h] ,class ;,y %>es4 ,a loss >ises on
  s* 4posi;n4 ,)9 ! p]iod describ$ 9
  p>agraph 7a7 (! def9i;n ( 8sup]ficial
  loss0 9 sec;n #ed (! ,act1 ! 9dividual
  acquires ,class ;,x %>es4 ,9 s* a
  case1 ! 9dividual's loss f ! 4posi;n
  (! ,class ;,y %>es wd 2 a 8sup]ficial
  loss0 )9 ! m1n+ ( sec;n #ed (! ,act4

       ,-mod;y ,futures ,3tracts
             7p>agraph #h7
    
#h4 ,-mod;y futures 3tracts : grant 6!
  hold] "!( ! same "rs >e 3sid]$ 6be
  id5tical4 ,t is1 futures 3tracts   #aa
           ,,it-#chg;,r#b7,c7        f#b
  =! same /&>d am.t (! same -mod;y =
  deliv]y 9 ! same mon? >e 3sid]$ 6be
  id5tical4
--------------------------------------#c
           ,9dex$ ,securities
             7p>agraph #i7
    
#i4 ,dur+ ! p]iod af ,septemb] #cj1
  #aihc & 2f ,janu>y #a1 #aihf1 subsec;n
  #dg7#d7 provid$ t prop]ties : 7 def9$
  0p>agraph #dg.a7#a77e7 z 9dex$
  securities 7 n subject 6! id5tical
  prop]ties rules4 ,9dex$ securities no
  l;g] exi/ z ! law 3c]n+ ,9dex$
  ,secur;y ,9ve/;t ,plans 0 rep1l$1
  applica# af ,janu>y #a1 #aihf4

        ,life ,9sur.e ,corpor,ns
           7p>agraphs #aj-aa7
    
#aj4 ,=! purposes ( sec;n #dg1 prop]ties
  (a life 9sur.e corpor,n : wd o!rwise 2

                                     #ab
           ,,it-#chg;,r#b7,c7        a#c
  id5tical >e deem$ 0subsec;n
  #ach7#aa.a7 n 6be id5tical un.s !y >e
  7a7 non-segregat$ prop]ty us$ 0x 9 !
    ye> in1 or held 0x 9 ! ye> 9 ! c\rse
    (1 c>ry+ on a life 9sur.e busi;s 9
    ,canada1 or
  7b7 non-segregat$ prop]ty us$ 0x 9 !
    ye> in1 or held 0x 9 ! ye> 9 ! c\rse
    (1 c>ry+ on an 9sur.e busi;s 9
    ,canada o!r ?an a life 9sur.e
    busi;s4
#aa4 ,=! purpose ( subsec;n #bf7#h7 (!
  ,,itar1 prop]ties [n$ 0a life 9sur.e
  corpor,n : wd o!rwise 2 id5tical >e
  deem$ 0subsec;n #bf7#h.a7 (! ,,itar n
  6be id5tical un.s !y >e
  7a7 9clud$ 9 ! same segregat$ fund 7z
    def9$ 9 subsec;n #ach.a7#a771
  7b7 non-segregat$ prop]ty describ$ 9
    p>agraph #aj7a7 abv1 or
  7c7 non-segregat$ prop]ty describ$ 9
    p>agraph #aj7b7 abv4

                                     #ac
            ,o!r ,public,ns          b#c
             7p>agraph #ab7
    
#ab4 ,! late/ revi.ns (! foll[+
  ,9t]pret,n ,bullet9s may 2 ref]r$ 6=
  a4i;nal 9=m,n on ! subject ( id5tical
  prop]ties3

  ,,it-#gh ,capital ,prop]ty ,[n$ on
    ,decemb] #ca1 #aiga--,id5tical
    ,prop]ties
  ,,it-#hh ,/ock ,divid5ds
  ,,it-#aae ,frac;nal ,9t]e/s 9 ,%>es
  ,,it-#adf ,%>es ,5titl+ ,%>ehold]s
    6,*oose ,taxa# or ,capital ,divid5ds
  ,,it-#aii ,id5tical ,prop]ties
    ,acquir$ 9 ,non-,>m's ,l5g?
    ,transac;ns






                                     #ad
           ,bullet9 ,revi.ns          #d
    
  ,p>agraphs #b 6#f & #h 6#ab h n be5
revis$ s9ce ! issu.e ( ,,it-#chg;,r#b
dat$ ,july #ad1 #aihi4
  ,a ,3t5ts sec;n has be5 a4$ at ! 2g9n+
(! bullet94 ,7,septemb] #ab1 #bjjb7'
  ,p>agraph #a has be5 revis$ 6take
963sid],n ! alphabetical reord]+ ( v>i\s
def9i;ns 9 sec;n #ed (! ,act1 &!
subtitle 8,g5]al0 has be5 a4$4
,7,septemb] #ab1 #bjjb7'
  ,p>agraph #g has be5 revis$ 69dicate t
a 3v].n "r atta*$ 6a class ( %>es (!
capital /ock (a corpor,n 3/itutes a 8"r
6acquire a prop]ty0 & t s* a "r is deem$
6be a prop]ty t is id5tical 6! prop]ty
96: x is 3v]ti# =! purpose (! def9i;n (
8sup]ficial loss0 9 sec;n #ed (! ,act4
,7,septemb] #ab1 #bjjb7'
  ,! subtitle 8,o!r ,public,ns0 has be5
a4$ 2f p>agraph #ab4 ,7,septemb] #ab1
#bjjb7'

                                     #ae