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.
Principal Issues: Whether the CRA has changed the position stated in document 9221815?
Position: New position has already been taken.
Reasons: See Document 2001-0108715
XXXXXXXXXX 2003-005130
Fouad Daaboul
August 3, 2004
Dear XXXXXXXXXX:
Re: Characterization of a French société en nom collectif
This is in reply to your letter of November 28, 2003, wherein you requested our views with respect to the above-noted subject, as related to our document 9221815. More particularly, you ask whether the position taken in the above noted document has been changed.
You mention that the Canada Revenue Agency ("CRA") has taken the view that a French société en nom collectif ("SNC"), whether or not it elects to be taxed as a corporation for French tax purposes, should be characterized as a partnership for Canadian tax purposes. The subject matter of this position had been brought at the CRA Round Table, question 6, at the May 13, 2002 International Tax Seminar of the International Fiscal Association. In our response we said that this issue was under review.
Shortly after, the above stated position has been changed. In fact, once the CRA completed its review, the results were published in our document 2001-0108715 of August 13, 2002, in which we said:
"Accordingly, we are of the view that an SNC that has its place of effective management in France for French tax purposes, that has made the Election and that is taxed as a corporation resident in France under French tax law is a person who, under the laws of France, is liable to tax therein by reason of its domicile, residence, place of management or any criterion of a similar nature and a resident of France for purposes of the Canada-France Treaty."
We trust the above comments are of assistance.
Yours truly,
Eric Allard-Pouliot
Acting Section Manager
for Division Director
International and Trusts Division
Income Tax Rulings Directorate
Policy and Planning Branch
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