Page:United States Statutes at Large Volume 59 Part 2.djvu/252

 917 59 STAT.] CANADA-DOUBLE TAXATION-JUNE 8, 1944 such decedent situated in the United States of America bears to the value of the property included in the entire gross estate of the decedent. 3. In the case of a decedent who at the time of his death was domiciled in Canada, Canada may include in the gross estate any property (other than real property) situated in the United States of America as though this Convention had not come into effect. 4. In the case of a decedent who at the time of his death was domi- ciled in the United States of America, Canada shall, in imposing the taxes to which this Convention relates: (a) take into account only property situated in Canada; and (b) allow as an exemption an amount which bears the same ratio to the personal exemption allowed in the case of a decedent who was at the time of his death domiciled in Canada as the value of the property of such decedent situated in Canada bears to the entire value of the property, wherever situated. Article VI 1. In the case of a decedent who at the time of his death was a citizen of or domiciled in the United States of America, the United States of America shall impose the estate taxes to which this Con- vention relates upon the following conditions: (a) In respect of property situated in Canada which, for the pur- pose of estate taxes, is included in the gross estate, less such property as is specifically deducted therefrom (either because of transfer for public, charitable, educational, religious or similar uses or because the property has been previously taxed under provisions of law relating to property previously taxed), there shall be allowed against the estate taxes a credit for Canadian succession taxes in respect of the property situated in Canada, the situs of such property being determined in ac- cordance with the laws of Canada, subject to the provisions of this Convention. (b) The portion of the Canadian succession taxes to be allowed as a credit against United States estate taxes shall be an amount which bears the same ratio to the total Canadian suc- cession taxes as the value of the property situated in Canada and with respect to which estate taxes are imposed by the United States of America bears to the total value of the property with respect to which succession taxes are imposed by Canada. (c) The credit in any such case shall not exceed an amount which bears the same ratio to such estate taxes, computed without the credit provided for herein, as the value of the property situated in Canada and not excluded or deducted from the gross estate as provided in (a) bears to the value of the entire gross estate. (d) The values referred to in (c) are the values determined by the United States of America for the purpose of estate taxes.

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