Commentary on Sections Overview Overview Section 756: Which securities and loans are foreign currency ones for section 755
2865.This section defines “foreign currency securities” for the purposes of section 755. It is based on section 581 of ICTA. Although the basic proposition in subsection (1) is quite straightforward, there are four qualifications to this proposition, set out in subsections (3) to (6).
2866.The source legislation, introduced during the exchange control era, refers to securities and loans “expressed in a currency other than sterling”. However, there could be more than one interpretation of the word “expressed”. In this context, the logical interpretation is that “expressed” means “repayable”. This is in line with the exchange control definition of a foreign currency security, and with the reference to securities “expressed” in a particular currency in other contexts in the Tax Acts. This section is therefore drafted in terms of the currency used for repayment.