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 XXXXXXXXXX is an instrumentality for purposes of the US Convention.
Position: Yes.
Reasons: Although the enabling legislation states that the XXXXXXXXXX is not an agent of Her Majesty, the XXXXXXXXXX appears to be effectively controlled by the Crown and its activities are of a governmental nature. It does not appear to carry on business. The XXXXXXXXXX is a corporation that is not a Crown corporation, but it has no issued share capital and is not authorized to issue shares. XXXXXXXXXX .
XXXXXXXXXX 2004-009727
Eliza Erskine
October 12, 2004
Dear XXXXXXXXXX:
Re: Status of the XXXXXXXXXX as an Instrumentality
This is in reply to your email of October 5, 2004, requesting us to confirm that the Canada Revenue Agency (the "CRA") views the XXXXXXXXXX as an instrumentality for purposes of the Canada-United States Income Tax Convention (the "Convention").
Generally, an instrumentality is an agent of the Crown under the terms of the enabling legislation (in this case, the XXXXXXXXXX")). However, under the XXXXXXXXXX Act, the XXXXXXXXXX is neither an agent of Her Majesty nor a Crown corporation. Despite this, we find that the better view is that the XXXXXXXXXX is an instrumentality for purposes of the Act and the Convention, on the basis that the Crown has effective control of the XXXXXXXXXX (in particular, see XXXXXXXXXX) and the XXXXXXXXXX performs functions of a governmental nature. Moreover, we agree that the XXXXXXXXXX situation is similar to the situation of other entities that the CRA has determined to be instrumentalities. XXXXXXXXXX.
We trust that these comments will be of assistance to you.
Yours truly,
Jim Wilson,
Manager
for Director
International and Trusts Division
Income Tax Rulings Directorate
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