CRA rules that a Treaty exempted the gain on the sale of a non-resident company holding Canadian vacant land
CRA ruled that the gifting by a non-resident of Canada, who was a resident of a redacted country for purposes of Art. 4(1) of the Treaty with that country, would be exempted under Art. 13(6) of that Treaty on the gain realized by him on gifting to his non-resident children all the shares of a wholly-owned single-purpose non-resident holding company through which he held vacant land in Canada. The land was held for investment purposes and the holding company had no business. CRA also ruled that there would be no s. 116 withholding obligation provided that the children (who were all minors) filed the required notifications under s. 116(5.02), so that the Holdco shares would constitute treaty-exempt property under s. 116(6.1).
Apparently the Treaty in question did not include shares of a company - that was not a resident of Canada but held Canadian real estate - in its definition of real or immovable property.