12 October 1989 Internal T.I. 58429 F - Exemption from Non-resident Withholding Tax

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.

SUBJECT: 24(1) Exemption from Part XIII Tax under the Income Tax Act

Further to our telephone conversation (Harms/Morrow) of September 25, 1989, we attach the following:

1.      letter from 24(1) dated July 24, 1989;

2.      a draft response to 24(1) (in which we confirm that 24(1) is exempt from Part XIII tax pursuant to section 9 of Article VII of Schedule II to the Bretton Woods Agreements Act, R.S.C. 1985, c. B-7);

3.      a copy of the relevant provision of the Bretton Woods Agreements Act; and

4.      copies of two similar responses previously given by the Department to the 24(1) and 24(1) dated December 16, 1976 and June 16, 1976, respectively.

In our view it would be more appropriate for the response to 24(1) to be provided by the Source Deductions Division rather than from the Specialty Rulings Directorate as the situation does not involve the application of tax laws to a proposed transaction or to a hypothetical fact situation.  We would therefore appreciate it if you would provide 24(1) with the appropriate response.

J.C. Clarkfor DirectorReorganizations and Non-Resident DivisionSpecialty Rulings DirectorateLegislative and Intergovernmental Affairs Branch