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 CCRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ADRC.
Principal Issues: Whether person was "liable to tax" for the purposes of the residence article of an income tax convention.
Position: Position is under review
Reasons:
2001 TEI Round Table
Question 14
Residence Under a Tax Convention
It has been suggested that the CCRA view regarding the meaning of the phrase "liable to tax" in the residence article of a tax convention is at odds with the interpretation given to the same phrase by the Internal Revenue Service of the United States. As evidence of this the CCRA is asked to consider Revenue Ruling 2000-59 (2000-52 I.R.B. 543). It is suggested that under the IRS interpretation, the phrase "liable to tax" in the determination of residence under a treaty with a country imposing taxation of worldwide income does not require actual taxation of the person.
CCRA Comments
The question raised by the Institute concerns a contentious policy issue which is currently under review by the CCRA. We are unable to provide any general guidelines at this time. However, we are evaluating actual cases based on their specific facts.
Prepared by: Olli Laurikainen
November 26, 2001
File Number: 2001-011097
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 2001
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 2001
Email this Content