9 May 1989 Income Tax Severed Letter 5-7189 - [Canada-U.S. Income Tax Convention (1980) (the "Treaty") Article XIII, Paragraphs 2 and 4 Disposition of a Partnership Interest]

By services, 22 July, 2022
Official title
[Canada-U.S. Income Tax Convention (1980) (the "Treaty") Article XIII, Paragraphs 2 and 4 Disposition of a Partnership Interest]
Language
English
Document number
Citation name
5-7189
Severed letter type
Miscellaneous
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
657039
Extra import data
{
"field_external_guid": [],
"field_proprietary_citation": [],
"field_release_date_new": "1989-05-09 08:00:00",
"field_tags": []
}
Main text

Revenue Canada Taxation Head Office

XXXX

D.Y. Dalphy (613) 957-2117

Attention: XXXX

MAY 9 1989

Dear Sirs:

Re: Canada-U.S. Income Tax Convention (1980) (the "Treaty") Article XIII, Paragraphs 2 and 4 Disposition of a Partnership Interest

This is in reply to your letter of December 2, 1988 concerning our interpretation of the Treaty in respect of the disposition by a U.S. resident of an interest in a partnership conducting operations in Canada through a permanent establishment where the partnership interest is not real property.

We agree with your interpretation of paragraph 2 of Article XIII of the Treaty, namely that U.S. resident corporations that alienate an interest in a partnership conducting operations through a permanent establishment situated in Canada, where the partnership interest is not real property as defined in subparagraph (3)(b)(iii) of Article XIII of the Treaty, are exempt from Canadian tax on any gain so realized by virtue of Article XIII, paragraph 4 of the Treaty.

We hope that our comments will be of assistance.

Yours truly,

for Director Reorganizations and Non-Resident Division Specialty Rulings Directorate Legislative and Intergovernmental Affairs Branch