16 July 1986 Income Tax Severed Letter 5-0304 - [860716[

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.

July 16, 1986

Revenue Canada Reorganizations and Non Resident Division Specialty Rulings Directorate Legislative & Intergovernmental Affairs Branch Ottawa, Ontario K1A 0L8

Attention: Mr. D.S. Delorey Re: Your file no: 5-0304

Dear Mr. Delorey:

Thank you for your letter of July 9, 1986 (a copy of which is enclosed herewith) concerning Articles XIII and XXII of the 1980 Canada - U.S. Income Tax Convention.

I have one follow up question which I would appreciate receiving your reply to in connection with your comments on page 2 of the said letter dealing with the source of the income where one U.S. resident concludes an agreement of sale in the United States with another non resident in respect of a "life insurance policy in Canada".

Question

In your view, where would the income arise if one U.S. resident sold in the United States to another U.S. resident, common shares in a company resident in Canada?

If your answer to the above question is Canada, would you be kind enough to refer the undersigned to the authority upon which you are basing such answer. If on the other hand, your answer to the above question is the United States, would you be kind enough to inform the undersigned as to the differences between the situation where shares are sold with the case where the object of the sale is a "life insurance policy in Canada".

Your immediate attention to this matter would be greatly appreciated.

Sincerely yours,