4 February 1977 Income Tax Severed Letter

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.

February 4, 1977

Mr. C.W. Manor Assistant Director Technical Interpretations Division

Technical Interpretations Division D. Lanos

Canada-Ireland Income Tax Convention Article IX

In an adverse decision of the Tax Review Board dated November 25, 1976 (Patrick J. Byrne v. MIR) which we will not appeal, it was found that Mr. Byrne was "ordinarily resident in Canada" only because of his employment (as a director of the Irish Development Authority, a non-profit branch of the Department of Industry and Commerce in Ireland) and as such came clearly within the provisions of Article IX of the above Convention..

By the terms of his employment with I.D.A., Mr. Byrne is subject to transfer out of Canada.

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In view or our policy and the above noted decision of the Tax Review Board, it is apparent that the fact that a taxpayer was a resident in Canada and employed by other persons for several years prior to his employment in Canada with the Government of Ireland is not relevant in a determination of whether Article IX applies to him. The fact that the terms of his new contract of employment with Ireland subject him, from the date of that contract, to transfer out of Canada is the factor that weighs most heavily in deciding that he is "ordinarily resident in that territory (Canada) solely for the purpose of rendering those services" for purposes of Article IX.

B. G. M. BUETOW

for Director Technical Interpretations Division c.c. Provincial & International Relations Division