20 March 1991 Income Tax Severed Letter

By services, 22 July, 2022
Language
English
Document number
Severed letter type
Miscellaneous
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
658001
Extra import data
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"menu:://Federal Income Tax [CCH Tax ]/Tax Window Files/Tax Window Files/Tax Window Files/1990s/1991 [MA91_339 - 903198]/MR91_178 — Canada-U.S. Income Tax Convention - Whether Persons are not Dealing with each other at Arm's Length"
],
"field_proprietary_citation": [],
"field_release_date_new": "1991-03-20 07:00:00",
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}
Main text
910428
                                                  G. Arsenault
                                                  (613) 957-2126
     24(1)19(1)

March 20, 1991

Dear Sirs:

Re: Subparagraph 3(d) of Article XI of the Canada-United States Income Tax Convention, 1980 (the "Convention")

This is in reply to your letter dated February 7, 1991 whereby you requested our opinion concerning the meaning of the term "persons dealing with each other not at arm's length" in subparagraph 3(d) of Article XI of the Convention.

In our opinion, by virtue of paragraph 2 of Article III of the Convention, the term "persons dealing with each other not at arm's length" has the same meaning as it does for purposes of the Canadian Income Tax Act (the "Act") as regards the application of the Convention by Canada. Therefore, for purposes of the application of the Convention by Canada, the provisions of section 251 of the Act will be applicable in determining whether persons are not dealing with each other at arm's length.

Yours truly,

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

000178