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 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.
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, 1990
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, 1990
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