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.
Department of Finance Canada
Ottawa, Canada K1A 0G5
May 16, 1985.
Mr. P. Pinkus, Director, Provincial and International Relations Division, Revenue Canada, Taxation, 88 Metcalfe Street, Room 480, Metcalfe Building, Ottawa, Ontario.
Dear Mr. Pinkus:
I refer to your letter of April 22, 1985 concerning paragraph 4(a) of Article 13 of the Canada-United Kingdom Double Taxation Convention.
The matter you raised was discussed recently with the British authorities and it was concluded that, even though Canada would normally be prepared to abandon its taxing right in the situation described in your letter, there was no compelling reason to do so. The United Kingdom taxes such gains only in very limited circumstances and consequently did not push for an exemption by Canada. In the event there is taxation in the United Kingdom, a foreign tax credit would be granted.
With respect to the interpretation of other tax treaties where similar wording is found I would suggest that you take a similar approach and would hope that any serious objections are brought to our attention. We have already received representation on this matter with respect to the tax treaty with the Federal Republic of Germany and undertook to correct the situation when a Protocol is negotiated.
Yours truly,
Chief of the Tax Treaty Group, Tax Policy-Legislation Division.
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, 1985
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, 1985
Email this Content