{"id":114,"date":"2012-09-04T16:37:49","date_gmt":"2012-09-04T16:37:49","guid":{"rendered":"https:\/\/thor.ca\/\/blog\/?p=114"},"modified":"2025-02-12T13:29:35","modified_gmt":"2025-02-12T21:29:35","slug":"cra-distinguishes-its-1995-treaty-position-as-no-longer-applicable","status":"publish","type":"post","link":"https:\/\/www.thor.ca\/blog\/2012\/09\/cra-distinguishes-its-1995-treaty-position-as-no-longer-applicable\/","title":{"rendered":"CRA distinguishes its 1995 treaty position as no longer applicable"},"content":{"rendered":"<p>In 2011-0392171R3 (released last week) the CRA examined its previous position for share options in a company that owns Canadian real property.\u00a0 Under Article XIII of the Canada-US tax treaty, gains realized by US residents on Canadian real property, or on \u201cshares\u201d of a Canadian company that owns Canadian real property (Canco), are taxable in Canada.\u00a0 The question was whether an \u201coption\u201d in respect of a Canco share would be itself be considered a \u201cshare\u201d for purposes of the treaty.\u00a0 The CRA said no, it would not.\u00a0 The CRA distinguished its 1995 position to the contrary (2011-0392171R3) on the basis that a \u201cshare\u201d is no longer deemed to include an \u201coption\u201d (with the repeal of former s. 115(3)).\u00a0 As a result, although the option would be \u201ctaxable Canadian property\u201d (s. 248(1)), any gain realized on the option would <span style=\"text-decoration: underline\">not<\/span> be subject to tax under Article XIII of the treaty.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In 2011-0392171R3 (released last week) the CRA examined its previous position for share options in a company that owns Canadian real property.\u00a0 Under Article XIII of the Canada-US tax treaty, gains realized by US residents on Canadian real property, or&hellip;<\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"class_list":["post-114","post","type-post","status-publish","format-standard","hentry","category-corporate-tax"],"_links":{"self":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts\/114","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/comments?post=114"}],"version-history":[{"count":1,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts\/114\/revisions"}],"predecessor-version":[{"id":2864,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts\/114\/revisions\/2864"}],"wp:attachment":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/media?parent=114"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/categories?post=114"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/tags?post=114"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}