Given the recent CRA' announcements on US LLLP classification and the introduction of anti-hybrid mismatch rules in countries like Luxembourg, which may apply depending on how Canada treats a particular Luxembourg entity for tax purposes (e.g., a Luxembourg special limited partnership), will CRA publish and maintain an online list of foreign entities that CRA has classified?
CRA noted that under its two-step approach to entity classification, it “examines the nature of the relationship between the various parties that are involved and their rights and obligations in respect of the foreign entity or arrangement under the applicable law and documentation,” and that as the classification of particular foreign entities or arrangements is thus “to be determined on a case-by-case basis” this “does not generally lend itself well to the type of standard or universal classification requested by this question”: it will “not be in a position to publish and maintain an online list of foreign entity or arrangement classifications.”
Taxpayer’s seeking a ruling in this regard should:
include with their request a complete description of the characteristics described above, their analysis as to the proper classification of the entity or arrangement for purposes of the [ITA] along with a discussion on the way their relevant provisions would appropriately apply to proposed transactions involving or affecting the rights and obligations of the entity or arrangement and its stakeholders, a copy of the foreign legislation applicable to the entity or arrangement and any other relevant documents described above.