Rev. Rul. 67-196

The Internal Revenue Service has issued rulings to a number of foreign corporations exempting certain classes of their stock from the interest equalization tax, pursuant to section 4920(b) (formerly 4920(a)(8)) of the Internal Revenue Code of 1954. This Revenue Ruling contains a list of foreign corporations which have received favorable rulings, updating the list previously published in Revenue Ruling 65-55, C.B. 1965-1, 51-1.

The classes of stock of such foreign corporations which satisfy the requirements of section 4920(b) of the Code are treated not as foreign stock issues but as domestic issues. Accordingly, United States persons who acquire shares of such a class of stock are not subject to the interest equalization tax.

These rulings exempt only those shares included in the term `class of stock' as defined in section 4920(b)(2) of the Code. The term `class of stock' means all shares of stock of a corporation issued and outstanding as of the corporation's latest record date before July 19, 1963, which are identical with respect to the rights and interests such shares represent in the control, profits, and assets of the corporation. The term also includes additional shares possessing rights and interests identical with the rights and interests of shares described in the preceding sentence if such additional shares shall have been: (1) issued on or before November 10, 1964; (2) issued after November 10, 1964, pursuant to a written commitment made by such corporation on or before such date; (3) issued after November 10, 1964, to a shareholder with respect to or in exchange solely for shares described in this paragraph; or (4) issued in accordance with section 4920(b)(2)(D) of the Code.

The Service has permitted corporations receiving rulings under section 4920(b) of the Code to issue shares of stock similar to the exempt class, which do not qualify for the exemption. In such cases the Service has specified that the nonqualifying shares are to be identified by a legend on the stock certificate by which they can easily be distinguished from the exempt class of stock.

Corporations issuing both exempt stock and similar stock which does not qualify as part of the exempt class of stock (so-called legend stock) are listed separately below. Since this list of corporations issuing nonqualifying legend shares may be modified from time to time, United States persons should ascertain before acquisition of shares of stock of any of the listed corporations whether the shares are exempt or nonexempt.

From time to time other lists will be published of those corporations which have received rulings during the period subsequent to this Revenue Ruling.

The following corporations have been issued favorable rulings under section 4920(b) of the Code with respect to the class of stock described for each corporation:

Alcan Aluminum Limited-common stock without nominal or par value.

Alliance Tire and Rubber Company Limited-class A stock.

Alscope Consolidated Limited-common stock.

Asamera Oil Corporation Ltd.-common capital stock.

Atlas Consolidated Mining & Development Corp.-common stock.

Blue Crown Petroleums Ltd.-common stock.

Brilund Mines Limited-capital stock.

Cabol Enterprises Limited-common stock, without par value.

The Calgary & Edmonton Corporation Ltd.-capital stock without nominal or par value.

Canada Southern Petroleum Ltd.-capital stock and voting trust certificates relating thereto.

The Canada Southern Railway Company-common stock.

Canadian Curtiss-Wright Limited-capital stock.

Canadian Export Gas & Oil Limited-common stock.

Canadian Homestead Oils Limited-common stock.

Canadian Javelin Limited-common stock without par value.

Canadian Superior Oil Limited-common stock with $1 par value.

Canadian Westinghouse Company, Ltd.-common stock without nominal or par value.

Cayzor Athabaska Mines Limited-common stock.

Chemalloy Minerals Limited-common stock, par value $1.

Columbia Cellulose Company, Ltd.-common stock without nominal or par value.

Consolidated Marbenor Mines Limited-common stock.

Consolidated Panther Mines Limited-common stock.

Delta Acceptance Corporation Limited-first preference share $100 par value, series B 5 1/2 percent cumulative redeemable sinking fund shares; second preference shares $100 par value, series A 5 1/2 percent cumulative convertible shares and common stock, no par value.

Dome Mines Limited-stock without nominal or par value.

Dome Petroleum Limited-common stock, par value $2.50.

Elite Cobalt Mines Limited-common stock.

Fargo Oils Ltd.-common stock, par value $1.

Ford Motor Company of Canada Ltd.-common stock, without par value.

Fruehauf Trailer Company of Canada Ltd.-common stock without nominal or par value.

Wm. Gluckin Company Limited-5 percent convertible preferred stock & common stock, each par value one pound.

The Goodyear Tire & Rubber Company of Canada Limited-common stock.

The Granby Mining Company Limited-common stock.

Greyhound Lines of Canada Limited-common stock.

Hudson's Bay Oil and Gas Co., Ltd.-capital stock, par value of $2.50.

Imperial Oil Limited-capital stock, without nominal or par value.

Indian Mountain Metal Mines, Limited-common stock.

Initiative Explorations Limited-common stock.

The International Nickel Company of Canada Ltd.-common stock without nominal or par value.

Jefferson Lake Petrochemicals of Canada Ltd.-common stock.

Jenkins Bros. Limited-common stock.

James A. Lewis Engineering Co., Ltd.-common stock.

Kardar Canadian Oils Limited-common stock.

MacDonald Mines Limited-common stock.

Magellan Petroleum Corporation-common capital stock, par value $0.01 and voting trust certificates relating thereto.

Molybdenite Corporation of Canada Ltd.-common stock with par value $1.

Monarch Fine Foods Limited-common stock without par value.

Murky Fault Metal Mines Limited-common stock.

Murphy Oil Company Limited-common stock.

National Malartic Gold Mines Limited-common stock.

National Petroleum Corporation Ltd.-capital stock, par value $0.25.

North Canadian Oils Limited-common stock, par value $0.25.

Northwest Nitro-Chemicals, Limited-common stock.

O'Okiep Copper Company Limited-ordinary shares, par value 1 Rand.

Orofino-Mines Limited-common stock.

Pacific Petroleums Ltd.-common stock, par value $1.

Peel-Elder Limited-capital stock of no par value.

Peruvian Oils & Minerals, Limited-capital stock.

Phoenix Canada Oil Company Limited-common stock.

Pompey Oil & Minerals Company Limited-common stock.

Prairie Oil Royalties Company Ltd.-capital stock.

Reeves MacDonald Mines Limited-common stock.

Sailfish Sports Craft Limited-common stock.

Schlumberger Limited-common stock.

Scurry-Rainbow Oil Limited-common stock.

Seven Arts Productions Limited-common stock without par value.

Silver Ridge Mining Co., Limited-common stock.

Snowdrift Base Metal Mines Limited-common stock.

Stanrock Uranium Mines Limited-common stock.

Syntex Corporation-common stock.

Tashota Nipigon Mines Limited-common stock.

Tropical Gas Company, Inc.-common stock.

Union Carbide Canada Limited-common stock without nominal or par value.

Union Oil Company of Canada Limited-common stock.

United Asbestos Corporation Limited-capital stock, $1 par value.

United Canso Oil & Gas Limited-capital stock, par value $1 and voting trust certificates relating thereto.

Vanadium-Alloys Steel Canada Limited-common stock, no par value.

Western Heritage Properties Limited-common stock.

The corporations listed below have been issued rulings which exempt the described class or classes of their stock under section 4920(b) of the Code, but have subsequently issued additional shares which are not exempt, even though they are similar in rights and interest to the exempt shares:

Banff Oil Limited-common stock & preferred stock.

Coastal Caribbean Oils & Minerals Ltd.-capital stock, par value one shilling and voting trust certificates relating thereto.

Husky Oil Canada Limited-common stock.

Surluga Gold Mines Limited-common stock.

The stock certificates representing the nonexempt shares should in each case be marked with the distinguishing legend.

Revenue Ruling 65-55, C.B. 1965-1, 511, is superseded.

¹ Based on Technical Information Releases 761 and 774, dated Sept. 13, 1965, and Oct. 8, 1965, respectively.