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.
5-8539
Dear Sirs:
Re: Article 13 of the Canada-United Kingdom Income Tax Convention (the "Convention")
This is in reply to your letter dated August 21, 1989. We also refer to your supplementary letters dated October 5, 1989 and March 15, 1990. We apologize for the delay in responding to you, which arose because we considered it necessary to undertake consultations with the Department of Finance in connection with subparagraph 7(b) of Article 13 of the Convention.
In our opinion, a mine that is owned and actively operated by a company in its business of exploiting mineral resources would constitute "property... in which the business of the company ...was carried on" within the meaning of subparagraph 7(b) of Article 13 of the Convention, provided the mine was not in respect of petroleum, natural gas or other related hydrocarbons.
Having regard to the definition of "minerals" in subsection 248(1) and the provisions of and the amendments proposed in July of 1990 to paragraphs 12(1)(0) and 18(1)(m) of the Act, paragraph 2 of Article 3 of the Convention and informal advice we have received from the Department of Energy, Mines and Resources, we are of the opinion that coal is included in "petroleum, natural gas or other related hydrocarbons" within the meaning of that term as used in paragraph 4 of Article 13 of the Convention.
Yours truly,
for DirectorReorganizations and Non-Resident DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch
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