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.
XXXXXXXXXX
Attention: XXXXXXXXXX
Dear Sirs:
RE: Article XI Canada-U.S. Income Tax Convention (1980)
This is in reply to your fax dated August 21, 1993 and further to our telephone conversation (XXXXXXXXXX- Laurikainen) August 25, 1993 concerning the status of the Export Development Corporation (the "EDC") under paragraph 3(c) of Article XI of the Canada-U.S. Income Tax Convention (1980) (the "Convention").
The EDC is a corporation which is exempted from tax under paragraph 149(1)(d) of the Income Tax Act because it is a corporation whose shares are owned by Her Majesty in right of Canada. The Export Development Act constitutes the EDC and it provides that the EDC is for all purposes an agent of Her Majesty in right of Canada.
Accordingly, it is our view that the EDC is "...an instrumentality of (Canada)...which is not subject to tax by (Canada)" for the purposes of paragraph 3(c) of Article XI of the Convention.
We trust that the above is of assistance to you.
Yours truly,
for DirectorReorganizations and Foreign DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 1993
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 1993