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.
| 19(1) |
903016 |
| |
M.P. Sarazin |
| |
(613) 957-2125 |
December 3, 1990
Dear Sir:
Re: Article 13 of the Canada-Germany Income Tax Agreement (1981) (the Agreement)
We are writing in reply to your letter dated October 18, 1990 wherein you brought to our attention the fact that the assumption made in our letter dated August 14, 1990 that the West-German "Gesellschaft des buergerlichen Rechts" ("GbR") is a private corporation is not correct.
You have advised us that a GbR is an association of two or more persons which is not a separate entity for West-German legal purposes nor for West-German income tax purposes. Any profits or losses determined for the GbR flow through to the owners of the GbR interests, to be taxed in the hands of those owners. A GbR is a form of non-commercial or non-trading partnership and is not a private corporation. We are of the view that a GbR would qualify as a partnership for the purposes of the Canada-Germany Income Tax Agreement (1981) ("Agreement").
Accordingly, you have requested that we reconsider the interpretations given to situations B and C in our letter of August 14, 1990.
Since a GbR does qualify as a partnership for purposes of the Agreement then Situation B described in our earlier letter would be the same as Situation D described therein and the conclusions reached in Situation D would also apply to Situation B. Similarly, Situation C described in our earlier letter would be the same as Situation E described therein and the conclusions reached in Situation E would also apply to Situation C.
The foregoing comments represent our general views with respect to the subject matter of your letter. The facts of a particular situation may lead to different conclusions. The foregoing opinions are not rulings and, in accordance with the guidelines set out in Information Circular 70-6R2 dated September 28, 1990, are not binding on the Department.
Yours truly,
for DirectorReorganizations and Non-Resident DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch
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© Her Majesty the Queen in Right of Canada, 1990
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© Sa Majesté la Reine du Chef du Canada, 1990
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