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.
Revenue Canada Taxation
Head Office 5-7359 J.D. Jones (613) 957-2104
JAN 19 1989
Re: Withholding Tax
This is in reply to your letter of December 19, 1988 wherein you requested a refund of withholding tax paid by XXXX on your behalf in circumstances summarized below.
XXXX
It is your view that the amount received from XXXX out of the Incentive Performance Plan is a payment which falls within the meaning of "pension" under Article XVIII of the Canada-U.S. Income Tax Convention (1980). Accordingly, it is your view that the amount of tax withheld in respect of the sum of XXXX should have been limited to 15% XXXX and as such you are requesting a refund in the amount of XXXX together with interest at the appropriate rate.
We regret that we are unable to agree with your view. Based on the information available, it iso, our view that the amount you received from XXXX out of the Incentive Performance Plan is a payment out of or under an "employee benefit plan" as defined in subsection 248(1)of the Income Tax Act (the "Act") and represents income from an office or employment taxable under Part I of the Act pursuant to paragraph 61)(g) of the Act.
We have enclosed the Department's Interpretation Bulletin, IT-502 which provides more detailed information in this regard and would direct your attention to paragraphs 7 and 14.
In order to determine whether or not any of the withholding tax may be refunded, you will be required to file an income tax return pursuant to section 115 of the Act.
If you are still of the view that the payment falls within the meaning of "pension" under Article XVIII of the Canada-U.S. Income tax Convention (1980), we would be pleased to reconsider our opinion upon presentation of further submissions and any relevant documentation to support your view.
We regret our reply could not be favorable.
Yours truly,
ORIGINAL SIGNED BY ORIGINAL SIGNÉ PAR
P. D. FUOCO
for Director Small Business and General Division Specialty Rulings Directorate Legislative and Intergovernmental Affairs Branch
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 1989
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 1989
Email this Content