20 November 1990 External T.I. 9028855 F - Part I Tax Election by Non-resident Making Withdrawal from RRSP

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.

19(1)

November 20, 1990

Dear Sirs:

This is in reply to your letter of October 11, 1990, wherein you requested a technical interpretation in respect of an election under section 217 of the Income Tax Act (the "Act") in a situation where a non-resident has made withdrawals from his registered retirement savings plan.

You specifically enquire as to whether income paid by a Canadian employer to a non-resident for services rendered outside Canada would be included in the computation of taxable income earned in Canada for purposes of section 217 of the Act.

It is our position that, under subparagraphs 115(1)(a)(i) and 115(2)(e)(1) of the Act, remuneration paid by a Canadian employer to a non-resident that is attributable to employment performed outside Canada would generally not to included in computing taxable income earned in Canada, for the purpose of the election under section 217 of the Act, provided that such remuneration is subject to income tax imposed by a country other than Canada, or is paid in connection with the selling of property, negotiating of contracts or rendering of services for his employer in the ordinary course of a business carried on by his employer. However, it should be noted that the applicable Income Tax Convention may provide for different results.

We trust the above comments will be of assistance to you.

Yours truly,

for DirectorFinancial Industries DivisionRulings Directorate