20 September 1988 Income Tax Severed Letter 7-3010 - [Article XIII(8), Canada - U.S. Income Tax Convention (1980) (the "Convention")]

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.

Revenue Canada Taxation Head Office

TO - International Audits Division 
        David Burton

FROM - Specialty Rulings Directorate
                      O.S. Laurikainen
                      (613) 957-2125

SUBJECT:  Article XIII(8), Canada - U.S.
               Income Tax Convention (1980)
               (the "Convention")

This is in response to your memorandum of June 27, 1988.

Where upon the wind-up of a U.S. Corporation, the Internal Revenue Code will permit postponement of the recognition of both the gain on disposition of shares by an individual and on the distribution of assets by that corporation, it is our view that such a transaction would fall with the ambit of Article XIII(8) of the Convention. We are not aware of any situation where such gains on the wind-up of a Canadian corporation would not be recognized for Canadian tax purposes.

for Director Reorganizations and Non-Resident Division Specialty Rulings Directorate Legislative and Intergovernmental Affairs Branch