Rev. Rul. 72-503

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 August 31, 1972, have received such letters and updates the list previously published in Revenue Ruling 72-160, C.B. 1972-1, 371.

The classes 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 this 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 11/10/64.

Blue Crown Petroleums Ltd.--common stock.

Brilund Mines Limited--common stock.

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

Cabol Enterprises Limited--common stock without par value.

Calgary & Edmonton Corporation Ltd. (The)--capital stock with nominal or par value.

Canada Costa Rica Mines Limited--common stock, par value $1.

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

Canada Southern Railway Company--common 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.

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.

Continental Research & Development Limited--common stock.

Crow's Nest Industries Limited (formerly Crow's Nest Pass Coal Company, Limited)--common stock.

Dome Mines Limited--stock without nominal or par value.

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

Elite Cobalt Mines Limited--common stock.

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

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.

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

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

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

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

Granby Mining Company Limited (The)--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.

International Nickel Company 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. Limited--common stock.

Kardar Canadian Oils Limited--common stock.

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

Monarch Fine Foods Limited--common stock without par value.

Murphy Oil Company Limited--common stock.

National Malartic Gold Mines Limited--common stock.

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

New Cayzor Athabaska Mines Limited (formerly Cayzor Athabaska Mines Limited)--common stock.

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.

Pago Mining Limited--capital without par value.

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

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

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.

Scott Paper Limited--common stock without nominal or par value.

Scurry-Rainbow Oil Limited--common stock.

Sherwin-Williams Company of Canada Limited (The)--common stock (voting, no par value).

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

Snowdrift Base Metal Mines Limited--common stock.

Stanrock Uranium Mines Limited--common stock.

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

Syntex Corporation--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 Limited--common stock without nominal or par value.

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

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 certificate relating thereto.

Western Heritage Properties Limited--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, event though they are similar in rights and interests to the exempt shares:

American International Reinsurance Company Inc.--common stock.

Atlas Consolidated & Development Corp.--common stock.

Banff Oil Limited--common stock and preferred stock. (Corporation underwent voluntary liquidation on December 2, 1970. Acquisition after such date of such "stock" may be subject to tax, unless another statutory exclusion or exemption applies.)

Canadian Curtiss-Wright Limited--capital stock.

Canvil Limited--common stock.

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

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

Murky Fault Mines Limited--common stock.

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

Tashota Nipigon Mines Limited--common stock.

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

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

"Surluga Gold Mines Limited--common stock," "Husky Oil Canada Limited--common stock," and "MacDonald Mines Limited--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 common stock of Surluga Gold Mines Limited or Husky Oil Canada Limited 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 Limited acquired by them prior to the close of August 19, 1968. Furthermore, for purposes of a subsequent acquisition of common stock of MacDonald Mines Limited (i.e., after August 19, 1968) by another United States person, any United States person who acquired such stock prior to the close of August 19, 1968, 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 72-160 is hereby superseded.