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.
| 24(1) |
902443 |
| |
R. Biscaro |
| |
(613) 957-2122 |
Attention: 19(1)
October 3, 1990
Dear Sirs:
This is in response to your letter of September 10 concerning the status of Taiwan as a government for purposes of the foreign tax credits available under section 126 of the Income Tax Act.
The status of the Taiwan government is some what peculiar in that it does not enjoy some of the privileges attaching to other states. Canada does not recognize the government yet it does not prohibit commercial dealings with that country, as is evident from the large number of goods available for sale in Canada that are made in Taiwan. The taxes paid to Taiwan should logically be allowed as a credit to the extent that they meet the conditions set out in section 126.
It is our view that Taiwan would meet the condition of being a "government" within the expression "government of a country other than Canada" for the purposes of section 126 and as well for subsections 20(11) and (12).
We trust that our comments will be of assistance to you.
for DirectorReorganizations and Non-Resident DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch
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© Her Majesty the Queen in Right of Canada, 1990
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© Sa Majesté la Reine du Chef du Canada, 1990
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