| 24(1) | 900873 |
| G. Arsenault | |
| (613) 957-2126 | |
| Attention: 19(1) | EACC9244 |
August 30, 1990
Dear Sirs:
Re: US Estate Taxes
This is in reply to you letter dated May 7, 1990.
Our administrative policy regarding the application of subsection 15(1) to the holding of Us residential real estate by a Canadian corporation for the benefit of its Canadian shareholder continues to be a stated in response to Question 20 at the Revenue Canada Round Table at the 1980 Canadian Tax Foundation Conference as elaborated upon in response to questions at the 1985, 1987, 1988 and 1989 Conferences as published by the Canadian Tax Foundation in the Reports on such Conferences.
We are uncertain as to what you mean by the statement in your letter that: "This corporation may or may not hold assets in trust for the Canadian residents" and thus we cannot comment thereon except to confirm that our administrative policy is strictly limited to residential real property situated in the United States acquired by the corporation for the personal use of the shareholder and our policy does not apply if the corporation owns any property of any other description whatsoever or undertakes any function other than the holding of such US residential real property.
We also note that because this is an administrative assessing policy we will not generally provide an advance ruling.
Yours truly,
for DirectorReorganizations and Non-Resident DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch