Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CCRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ADRC.
Principal Issues: Whether paragraph 2 of Article 23 of Poland Treaty is taken into account in determining whether or not income is taxable in Poland for the purposes of the reduced rate in paragraph 2 of Article 21.
Position: No.
Reasons: Law
XXXXXXXXXX 2002-015103
J. Stalker
July 12, 2002
Dear XXXXXXXXXX:
Re: Article 21 of the Canada-Poland Tax Convention (the "Convention")
This is in reply to your facsimile to us dated July 6, 2002, requesting our views regarding the above-noted subject matter. In particular, you are concerned about income derived by a resident of Poland from an estate or trust resident in Canada.
Paragraph 2 of Article 21 allows Canada, as the source State, to tax certain other income paid to a resident of Poland. However, if the income is from an estate or trust, Canada is limited to a tax of 15 percent of the gross amount of the income, "provided that the income is taxable in the Contracting State [Poland] in which the recipient resides". We confirm that in determining whether or not the estate or trust income is taxable in Poland, the impact of paragraph 2 of article 23 of the Convention is not considered.
We trust that the above comments will be of assistance to you.
Yours truly,
Director
International and Trusts Division
Income Tax Rulings and
Interpretations Directorate
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