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.
March 10, 1988
TO - Specialty Rulings Directorate Reorganizations and Non-Resident Division
FROM - HEAD OFFICE International Audits Division J. Waszut (613) 952-7475
Attn: A. Cockell Director
SUBJECT: 1980 Canada - U.S. Income Tax Convention - Article XXV(5)
In reviewing a training course on the above Convention for CCD, an interpretation problem has arisen in respect of Article XXV(5) for which we wish to ask your opinion.
At issue is the interpretation of the phrase " ---- the capital of which is wholly or partly owned or controlled ----", in particular the words "partly owned". An overview of the paragraph would seem to indicate the intention was that "partly owned" would mean a controlling interest. However, on a strict interpretation of the words, the meaning would cover a situation where only one share of the total capital is owned.
XXXX The Technical Explanation of the U.S. Treasury Department does not clarify the meaning, but, rather, merely restates the words "partly owned."
We are therefore requesting an opinion from your Division on whether the words "partly owned" are restricted to an amount of shares that constitutes a controlling interest or whether they must be interpreted to cover any situation where one or more shares are owned by a person.
Director International Audits Division
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© Her Majesty the Queen in Right of Canada, 1988
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© Sa Majesté la Reine du Chef du Canada, 1988
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