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: What is a Liechtenstein "Establishment" considered to be for Canadian tax purposes?
Position: Likely a corporation.
Reasons: Barring subsequent legislative change in Liechtenstein, our position, as set out in IT-343R and 9203695, is that an Anstalt (or Establishment in english) is a corporation for purposes of the Income Tax Act (Canada).
September 9, 2002
Returns Processing & Compliance Section T. Cook
Non-Resident Operations Division 946-4165
International Tax Directorate
344 Slater St., 5th Floor
Ottawa, ON
Attention: Angela Aubé 2002-014395
Question Regarding Liechtenstein Establishment
We are writing in response to your facsimile of May 31, 2002, which forwarded a question from a tax advisor, XXXXXXXXXX. She asked what the correct characterization of a Liechtenstein Establishment was for Canadian tax purposes. Our research indicates that "Establishment" is simply the translation of "Anstalt". As you know, in Interpretation Bulletin IT-343R, Meaning of the Term Corporation, we took the view that a Liechtenstein Anstalt was a corporation for certain purposes of the Income Tax Act (Canada) (the "Act"). Similarly, in technical interpretation 9203695 we took the view that a Liechtenstein Anstalt was a corporation for purposes of the Act.
On August 23, 2002 we spoke to XXXXXXXXXX (Cook/XXXXXXXXXX). We stated that it was our understanding that "Establishment" was simply the translation of "Anstalt" and that in IT-343R and previous technical interpretations we had taken the view that an Anstalt was a corporation for purposes of the Act. We also indicated that if there have been significant, subsequent changes to the legislative regime governing Anstalts, the onus would be on taxpayer to draw them to our attention. XXXXXXXXXX indicated that she would revert to us by August 30, 2002 if she required a written response. We have not heard back from XXXXXXXXXX and are therefore closing this file.
Jim Wilson
For Director
International and Trusts Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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