Rev. Rul. 71-17

The Internal Revenue Service has issued ruling letters to a number of foreign corporations holding certain classes of their stock exempt 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 that as of November 20, 1970, have received such letters and updates the list previously published in Revenue Ruling 70-365, C.B. 1970-2, 278.

The classes of stock of such foreign corporations that 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 that acquire shares of such a class of stock are not subject to the interest equalization tax.

These ruling letters 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 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 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.

Some corporations receiving ruling letters under section 4920(b) of the Code have issued shares of stock which, although similar to the exempt class, do not qualify for the exemption. In such cases, in order that the previously issued ruling letter not be adversely affected, the Service has specified that 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 such listed corporations whether the shares are exempt or nonexempt.

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

The corporations listed below have received ruling letters under section 4920(b) of the Code holding that the class of stock described for each corporation is exempt from the interest equalization tax:

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

Alliance Tire & Rubber Company Limited--class A stock.

Allied-Roxana Minerals Limited--common stock with nominal par value.

Alscope Consolidated Limited--common capital stock.

Asamera Oil Corporation Ltd.--common capital stock.

Avco Delta Corporation Limited (formerly Delta Acceptance Corporation Limited)--first preference share $100 par value, series B 51/2 percent cumulative redeemable sinking fund shares; second preference shares $100 par value, series A 51/2 percent cumulative convertible shares and common stock no par value.

Beauty Counselors of Canada, Ltd.--common stock without par value issued prior to November 10, 1964.

Blue Crown Petroleums, Ltd.--common stock.

Brilund Mines Ltd.--common stock.

British--American Insurance Co., Ltd.--common stock.

Cabol Enterprises Ltd.--common stock without par value.

Calgary & Edmondton Corp., Ltd. (The)--capital stock without nominal or par value. Canada Costa Rica Mines, Ltd.--common stock, par value $1.

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

Canada Southern Railway Co.--common stock.

Canadian Export Gas & Oil, Ltd.--common stock.

Canadian Homestead Oils, Ltd.--common stock.

Canadian Javelin, Ltd.--common stock without par value.

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

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

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

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

Consolidated Marbenor Mines, Ltd. common stock.

Consolidated Panther Mines, Ltd.--common stock.

Continental Research & Development, Ltd.--common stock.

Crow's Nest Industries Ltd.--common stock (formerly Crow's Nest Pass Coal Co., Ltd.).

Dome Mines, Ltd.--stock without nominal or par value.

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

Elite Cobalt Mines, Ltd.--common stock.

Exquisite Form Brassiere (Canada), Ltd.--common shares no par value.

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

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

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

Glen Lake Silver Mines, Ltd.--common stock.

Wm. Gluckin Co., Ltd.--5 percent convertible preferred stock and common stock, each par value one pound.

Golden Age Mines, Ltd.--common stock (no par value).

Goodyear Tire & Rubber Co. of Canada Ltd. (The)--common stock.

Granby Mining Co., Ltd. (The)--common stock.

Greyhound Lines of Canada, Ltd.--common stock.

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

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

Indian Mountain Metal Mines, Ltd.--common stock.

Initiative Explorations, Ltd.--common stock.

International Nickel Co. of Canada, Ltd. (The)--common stock without nominal or par value.

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

Jefferson Lake Petrochemicals of Canada, Ltd.--common stock.

Jenkins Bros., Ltd.--common stock.

Kardar Canadian Oils, Ltd.--common stock.

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

Monarch Fine Foods, Ltd.--common stock without par value.

Murphy Oil Co., Ltd.--common stock.

National Malartic Gold Mines, Ltd.--common stock.

New Cayzor Athabaska Mines, Ltd. (formerly Cayzor Athabaska Mines, Ltd.)--common stock.

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

Northwest Nitro-Chemicals, Ltd.--common stock.

O'Okiep Copper Co., Ltd.--ordinary shares, par value 1 rand.

Orofino-Mines, Ltd.--common stock.

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

Pago Mining, Ltd.--capital without par value.

Pancoastal Petroleum, Ltd.--common capital stock voting trust certificates relating thereto.

Pantepec Oil Co., C.A.--capital stock par value one bolivar.

Peel-Elder, Ltd.--capital stock of no par value.

Peruvian Oils & Minerals, Ltd.--capital stock.

Phoenix Canada Oil Co., Ltd.--common stock.

Pompey Oil & Minerals Co., Ltd.--common stock.

Prairie Oil Royalties Co., Ltd.--capital stock.

Reeves MacDonald Mines, Ltd.--common stock.

Sailfish Sports Craft, Ltd.--common stock.

Schlumberger, Ltd.--common stock.

Scott Paper, Ltd.--common stock without nominal or par value.

Scurry-Rainbow Oil, Ltd.--common stock.

Silver Ridge Mining Co., Ltd.--common stock.

Snowdrift Base Metal Mines, Ltd.--common stock.

Stanrock Uranium Mines, Ltd.--common stock.

St. John d'el Rey Mining Co., Ltd.--shares of ordinary stock.

Syntex Corp.--common stock.

TACA International Airlines S.A.--common stock $0.10 par value.

Teledyne Canada, Limited (formerly Vascan Limited, which formerly was Vanadium-Alloys Steel Canada Limited)--common stock, no par value.

Texaco Canada, Ltd.--common stock without nominal or par value.

Tropical Gas Co., Inc.--common stock and preferred.

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

Union Oil Co. of Canada, Ltd.--common stock.

United Asbestos Corp., Ltd.--capital stock $1 par value.

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

Western Heritage Properties, Ltd.--common stock.

The corporations listed below have received ruling letters holding that the described class or classes of their stock are exempt 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:

Atlas Consolidated Mining & Developing Corp.--common stock.

Banff Oil, Ltd.--common stock and preferred stock.

Canadian Curtiss-Wright, Ltd.--capital stock.

Coastal Caribbean Oils & Minerals, Ltd.--capital stock, par value 1 shilling and voting trust certificates relating thereto.

Molybenite Corp. of Canada, Ltd.--common stock with par value $5 (formerly common stock with par value $1.).

Murky Fault Metal Mines, Ltd.--common stock.

Tashota Nipigon Mines, Ltd.--common stock.

Warner Bros. Seven Arts, Ltd. (formerly Seven Arts Productions, Ltd.)--common shares without par value.

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

"National Petroleum Corp., Ltd.--capital stock, par value $0.25," "Surluga Gold Mines Limited--common stock," "Husky Oil Canada, Ltd.--common stock," and "MacDonald Mines, Ltd.--common stock" were previously deleted from lists published in prior Revenue Rulings. However, if a United States person can establish that his acquisition of shares of capital stock, par value $0.25 of National Petroleum Corp., Ltd., or shares of common stock of Surluga Gold Mines, Ltd. or Husky Oil Canada, Ltd. are shares which meet the requirements of section 4920(b) of the Code, such an acquisition will not be subject to the interest equalization tax.

Under the provisions of section 7805(b) of the Code, interest equalization tax will not be imposed upon United States persons with respect to shares of common stock of MacDonald Mines, Ltd. acquired by them prior to the close of August 19, 1968, or of capital stock, par value $0.25 of National Petroleum Corp., Ltd. acquired by them prior to the close of January 12, 1970. Furthermore, for purposes of a subsequent acquisition of common stock of MacDonald Mines, Ltd. (i.e., after August 19, 1968) or of capital stock, par value $0.25 of National Petroleum Corp., Ltd. (i.e., after January 12, 1970) by another United States person, any United States person who acquired such stock prior to the close of August 19, 1968, or January 12, 1970, as the case may be, will be considered to have acquired such stock without liability for payment of such tax within the meaning of section 4918(a)(2)(B) of the Code.

Revenue Ruling 70-365 is hereby superseded.