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.
Principal Issues: Whether a French SNC is a partnership for the purposes of the Act
Position: Yes
Reasons: It has attributes consistent with those of a partnership under Canadian partnership law and the characterization thereof under French tax law is not relevant.
XXXXXXXXXX 2005-014831
February 15, 2006
Dear XXXXXXXXXX
Re: French Societe en Nom Collectif ("SNC")
This is further to our telephone conversation February 8, 2006 and in response to your letter wherein you requested that we clarify our view in reference to the charaterization of a French SNC under the Income Tax Act (the "Act").
As discussed, the Canada Revenue Agency ("CRA") considers a French SNC that has its place of effective management in France for French tax purposes, to be a partnership for the purposes of the Act regardless of whether or not it has made an irrevocable election to be taxed as a corporation under French tax law. It was not our intention to indicate in our document 2003-0051301E5 that this position was under review or had been changed.
Yours truly,
Olli Laurikainen CA
Section Manager
for Division Director
International and Trusts Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch
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