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.
November 24, 1977
HEAD OFFICE PROVINCIAL AND INTERNATIONAL RELATIONS DIVISION R.G. D'Aurelio
Tax Conventions - Norway and Denmark
Your memorandum of November 4 concerns two Canadian resdidents one who is a member of two Danish partnerships and another who is a member of a Norwegian partnership.
Our Income Tax Act does not tax partnerships, it allocates the income of a partnership to the partners and taxes each partner if they are Canadian residents (see Subsection 96(1) and paragraph 12(1)(l)).
Accordingly, in you two circumstances the income or losses of the partnerships allocable to the individuals in question are included in the computation of income of these individuals under Part I of the Act. Since, as you point out, the individuals are Canadian "enterprises" for the purposes if the relative treaties, their taxability in Canada is not affected by those treaties. We also point out that, if the partnerships are taxable in their respective countries, the individuals are allowed foreign tax credits pursuant to section 126 with respect to such taxes paid.
ORIGINAL SIGNED BY ORIGINAL SIGNÉ PAR R.J.L. READ
R.J.L. Read Acting Director Provincial and International Relations Division
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© Her Majesty the Queen in Right of Canada, 1977
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© Sa Majesté la Reine du Chef du Canada, 1977
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