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.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
942640
XXXXXXXXXX David R. Senécal
(613) 957-9796
February 10, 1995
Dear XXXXXXXXXX:
This is in reply to your letter of October 4, 1994, wherein you request our opinion as to whether the phrase "real property situated in the other Contracting State" contained in paragraph 3 of Article XIII of the Canada-United States Income Tax Convention (the "Convention") includes, in the case of real property situated in Canada, an option in respect of a share of a company, the value of whose shares is derived principally from real property situated in Canada. We apologize for the delay in responding request.
In our view, the reference in paragraph 3 of Article XIII to "a share of the capital stock of a company, the value of whose shares is derived principally from real property situated in Canada" includes an option in respect of such a share. We feel that this is provided for through the operation of Article III(2) of the Convention and subparagraph 115(1)(b)(iii) and subsection 115(3) of the Income Tax Act and that defining a share in this manner appropriately reflects the scheme of Article XIII as well as the intent of both of the Contracting States.
Yours truly,
for Director
Reorganizations and Foreign Division
Rulings Directorate
Policy and Legislation 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, 1995
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, 1995
Email this Content