8 May 1998 Internal T.I. 9807536 - ARTICLE XXIX B OF CANADA-U.S. TAX TREATY

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.

Principal Issues:

Clarification of previous memorandum regarding Article XXIX B of the Canada-U.S. tax treaty

Position:

It is the responsibility of the International Tax Services Office to deal with refund claim where a tax return had been filed later than 3 years from the year of death.

Reasons:

Pursuant to subsections 164(1) and (1.5) of the Act

May 8, 1998

Carolyn Ritchie, Manager International Section
T1 Adjustments Section S. Leung
Individual Returns and Payments 957-2115
Processing Directorate

Attention: Geraldine Vanderspank		                980753

Article XXIX B of the Canada-United States
Income Tax Convention (the “Convention”)

On January, 1997 we sent you a copy of the draft paper on the above-noted subject matter. We are writing to clarify the positions expressed under the heading “Deadlines for Claiming Tax Credits under Paragraph 6 of Article XXIX B” located at the beginning of that draft paper.

With respect to deaths occurring after November 10, 1988 but before November 10, 1995, we had made an assumption in that draft paper that the final tax return of the deceased taxpayer had not been filed late. In the case of a tax return which has not yet been filed, we had assumed that it will be filed within three years from the end of the year of death. For tax returns which were filed later than three years after the end of the year of death, it would be the responsibility of the personnel who deal with the fairness package at the International Tax Services Office to decide whether a refund claim would be allowed pursuant to subsection 164(1.5) of the Income Tax Act.

We trust that the above clarification will be of assistance.

for Director
Reorganization and International Division
Income Tax Rulings
and Interpretations Directorate
Policy and Legislation Branch

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