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.
Dear Sirs:
Re: Article 13 of the Canada-United Kingdom Income Tax Convention (the “Treaty”)
This is in reply to your letter dated August 24, 1990 whereby you requested our opinion concerning subparagraph 7(b) of Article 13 of the Treaty.
In our opinion, mines and mineral reserves and rights to explore for and/or exploit mineral deposits owned and used by a corporation in its business of exploitation of and/or exploration for minerals 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 Treaty, provided the mines, mineral reserves or rights are not in respect of petroleum, natural gas or other related hydrocarbons referred to in paragraph 4 of Article 13. We note that coal is a “related hydrocarbon”.
A determination of from what shares derive their value or the greater part of their value is essentially a question of fact that can only be determined after consideration of all relevant facts including the manner in which the various assets of the company have been financed.
Generally, subject to any special provisions such as paragraph 4 of Article 13 of the Treaty, our opinion set further above in respect of subparagraph 7(b) of Article 13 of the Treaty will also apply in respect of comparable provisions of other income tax conventions.
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 1991
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 1991
Email this Content