Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues: Will Article XXIX B(6) of the Canada-US Treaty apply to allow U.S. estate taxes on U.S. property (options to acquire shares of a U.S. Company) held at the time of the Canadian resident's death to be applied as a credit against Canadian income tax payable for the year of death on any income, profits or gains arising in the U.S.?
Position: Answer not available.
Reasons: Under review by Finance. File closed and client advised that a response will be prepared when we hear back from Finance.
XXXXXXXXXX 2000-001623
M. P. Sarazin
Attention: XXXXXXXXXX
May 3, 2000
Dear Sirs:
Re: Article XXIX B(6) of the Canada-U.S. Income Tax Convention (1980)
This is in response to your letter of March 15, 2000, wherein you requested a technical interpretation as to whether U.S. estate taxes charged on options to acquire shares of a U.S. public company held by a Canadian resident employee of a Canadian subsidiary of the U.S. public company on his or her death would be eligible for the credit under Article XXIX B(6) of the Canada-U.S. Income Tax Convention (1980).
We wish to advise you that we are not able to provide any comments at this time because the issue is under review with the Department of Finance. Until the review is completed, we are unable to provide you with the requested comments. Since the review is taking much longer than anticipated, we will be closing this file for the time being and a new file will be opened when the review is completed.
We trust the above arrangement is satisfactory.
Yours truly,
Patricia Spice
for Director
Financial Industries Division
Income Tax Rulings Directorate
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