25 March 1999 External T.I. 9813505 - MEANING OF "YEARS IMMEDIATELY PRECEDING"

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: Whether reference to "years immediately preceding an alienation" in a tax treaty refers to calendar years, fiscal years or periods of 365 days.

Position: Periods of 365 days.

Reasons: Other interpretation would lead to uncertainty as to whether the part of fiscal or calendar year of alienation was to be included. If calendar of fiscal years were intended, drafter would presumably have used different wording.

		981350
XXXXXXXXXX 	Olli Laurikainen
(613) 957-2116
Attention: XXXXXXXXXX 

March 25, 1999

Dear Sirs:

Re: Paragraph 7(b) of Article XIII of the Canada - Switzerland Income Tax Convention (the “Convention”)

This is in response to your letter wherein you request our view whether the reference to “five years” in the phrase “was a resident of Canada at any time during the five years immediately preceding such alienation” in the above provision of the Convention is a reference to five periods of 365 days immediately preceding the disposition or five calendar or taxation years immediately preceding the disposition.

It is our view that the reference to “five years” in paragraph 7(b) of Article XIII of the Convention is a reference to five periods of 365 days.

We trust this is the information you require.

The foregoing comments are given in accordance with the practice referred to in paragraph 22 of information Circular 70-6R3 and are not binding on Revenue Canada.

Yours truly,

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