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.
| 24(1) |
901828 |
| |
G. Arsenault |
| |
(613) 957-2126 |
19(1)
October 1, 1990
Dear Madam:
Re: Canada-Japan Income Tax Convention (1986) (the "Convention")
This is in reply to your letter dated August 3, 1990.
In our opinion, residents of Japan are not granted any exemption from Canadian tax on capital gains by the Convention. Article 13 of the Convention does not purport to grant any such exemption and Article 20 applies only to income and does not apply to capital gains. Accordingly, a resident of Japan who realizes a capital gain on the disposition of shares of a Canadian private company (i.e. taxable Canadian property) is subject to Canadian tax under the Income Tax Act on such capital gain and is not entitled to any exemption from such tax by virtue of the Convention.
Yours truly,
for DirectorReorganizations and Non-Resident DivisionRulings DirectorateLegislative and IntergovernmentalAffairs Branch
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© Sa Majesté la Reine du Chef du Canada, 1990
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