12 August 1985 Income Tax Severed Letter A-1659 - [U.S. Tax Reform Act - Deemed Residents of the U.S.]

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.

TO - Provincial and International Relations Division

From - Non-Corporate Rulings Division Glen Thornley

ATTENTION Mr. P. Pinkus Director

RE: U.S. Tax Reform Act - Deemed Residents of the U.S.

We are enclosing a letter dated July 3, 1985 from XXXX for your reply since the underlying issue has not previously been resolved, to our knowledge. This letter raises the rather significant question of whether a "deemed" resident of the U.S., under U.S. domestic law, is entitled to the protection of the Canada - U.S. Income Tax Convention (1980) - and, in this particular case, under the greater relief provisions of Article XXX of the new treaty, to the exemption under Article VIII of the former treaty. In considering the first part of the question, it must be decided whether paragraph 1 of Article IV of the new treaty includes a person who is a "deemed" resident under the U.S. domestic law. In considering the second part of the question, there may of course be a different result, since "resident" was not a defined term under the former treaty.

We shall be pleased to discuss this matter further, if you so wish.

for Director Non-Corporate Rulings Division

Can.- U.S. Treaty (1980) Article XXX & IV

Can. - U.S. Treaty (former) Article VIII