21 September 1992 External T.I. 9203915 F - Part XIII Tax Refund Interest

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.

                    5-920391

                    Olli Laurikainen

24(1)               (613) 957-2116

Attention:  19(1)

September 21, 1992

Dear Sirs:

Re:  Refund Interest

This is in reply to your letter dated January 31, 1992 concerning the computation of refund interest in respect of a Part XIII tax overpayment which was withheld pursuant to subsection 216(4) of the Income Tax Act (the "Act") and refunded pursuant to the filing of a return under subsection 216(1) of the Act.

Pursuant to subsection 216(3) of the Act, "Part I is applicable mutatis mutandis to payment of tax under..." section 216 of the Act.  The provisions in Part I, such as subsection 164(3), which deal with the computation of refund interest do not pertain to the "payment of tax".  Therefore, it is arguable that the refund interest provisions in Part I of the Act would be inapplicable to a non-resident who is filing a subsection 216(1) of the Act return.

It is our understanding that the Department has an administrative policy in this regard and as discussed during our telephone conversation (19(1) - Olli Laurikainen), we are referring your letter to our International Tax Programs Directorate for an explanation of that policy.

We trust the above is of assistance to you.

Yours truly,

for DirectorReorganizations and Foreign DivisionRulings DirectorateLegislative and Intergovernmental  Affairs Branch