23 February 1990 Internal T.I. 5-7757 F - Exempt Organization and Definition of Residence in Canada's Tax Treaties

February 23, 1990

Dear Sirs:

Re: Exempt organization and the definition of residence in Canada's tax treaties

This is in reply to your letter of March 22, 1989 in which you questioned whether we would consider an exempt organization to be "resident of a contracting state" for purposes of the residence definition in the majority of tax treaties which Canada has with foreign countries.

In general we are of the opinion that exempt organizations are "residents of a contracting state" for purposes of a particular tax treaty if that treaty contains a residence definition similar to that contained in the Canada-United States Income Tax Convention (1980). In our view it was not intended that exempt organizations be denied the benefits of a particular treaty when the residence definition was negotiated in this manner.

We trust this will be of assistance to you.

Yours truly,

for DirectorReorganizations and Non-Resident DivisionSpecialty Rulings DirectorateLegislative and Intergovernmental Affairs Branch