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.
XXX
Thank you for your letter of February 17 concerning video-tape recordings and the Department's interpretation of the term "motion picture films" used in Article XIIIC of the Canada-U.S. Income Tax Convention.
In our opinion, the above term includes recordings on video-tape which when shown on a screen are seen by the viewer as picture in movement. If the objects (the pictures) are still, the video-tape recordings are not considered to be "motion picture films" within the meaning of Article XIIIC of the Convention.
You have also enquired about the status of a written opinion expressed in 1978 to XXX of your firm by Mr. J.E. Griod of this Directorate. The Department's position regarding the status of opinions on technical interpretation of the law is described in paragraph 24 of Information Circular 70-62. Although such opinions are not binding, in order not to create situations of undue hardship, the Department's general practice is to carefully review the circumstances of each case in connection with any assess-ing action involving taxpayers that clearly relied upon the Department's opinions. Factors considered by the Department will include the nature and source of the opinion as well as the degree of sophistication of the recipient of the opinion and the taxpayer concerned. Unless clear evidence to the contrary exists, such opinions are not considered to have created hardship situations where they have not been relied upon, for example, where tax under Part XIII was withheld, notwithstanding an opinion to th-e contrary.
With reference to the application of Article XIIIC of the Convention, we are not aware of any situations in which the opinion to which you refer could be said to have created on undue hardship to the taxpayers involved.
We trust the foregoing will be assistance.
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© Her Majesty the Queen in Right of Canada, 1983
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© Sa Majesté la Reine du Chef du Canada, 1983
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