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: Does "approved stock exchange" in article 13 of a tax treaty mean a stock exchange prescribed for purposes of the Act?
Position: Yes.
Reasons: General object and spirit approach as confirmed by comments of the Department of Finance.
XXXXXXXXXX 2004-009309
Eliza Erskine
September 9, 2004
Dear XXXXXXXXXX:
Re: Meaning of "Approved Stock Exchange"
This is in reply to your fax of August 31, 2004, requesting an interpretation with respect to the above-noted subject matter. Specifically, you asked that we confirm that the term "approved stock exchange" found in Article 13 of both the Canada-Luxembourg Tax Convention and the Canada-Netherlands Income Tax Convention will be interpreted to mean a stock exchange prescribed for purposes of the Income Tax Act (the "Act").
We hereby confirm that the Canada Revenue Agency interprets the term "approved stock exchange" as used in Article 13 of the tax treaties referred to immediately above to mean, in the context of an approved stock exchange in Canada, a stock exchange prescribed for purposes of the Act. Moreover, this meaning will also apply to similar wording found in the same article in Canada's other tax treaties to the extent that the wording of a particular tax treaty does not provide otherwise. In our view, the fact that the term is specifically defined in certain tax treaties or even in other articles of the same tax treaty does not affect this interpretation, as this interpretation is consistent with the object and purpose of the Article.
Yours truly,
Jim Wilson,
Manager
for Director
International and Trusts Division
Income Tax Rulings Directorate
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