| 19(1) | File No. 5-7484 |
| R.C. O'Byrne | |
| (613) 957-2126 |
February 27, 1990
Dear Sirs:
Re: Article 4 Canada-Australia Income Tax Convention (the "Convention")
This is in reply to your letter of January 30, 1989 in which you asked whether an Australian Non-Profit Society (a "Society") would be considered a resident of Australia for purposes of the Convention. You are concerned that paragraph 2 of Article 4 ("Article 4(2)") of the Convention may preclude a Society from being considered a resident of Australia.
In our opinion the negotiators of the Convention intended that exempt organizations, such as a Society, be considered resident in the country in which they were organized. Accordingly, we are of the view that Article 4(2) of the Convention would not preclude a Society from being considered resident in Australia for purposes of the Convention.
We trust this will be of assistance to you.
Yours truly,
for DirectorReorganizations and Non-Resident DivisionSpecialty Rulings DirectorateLegislative and Intergovernmental Affairs Branch