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.
DATE: February 20, 1986
TO-A DATE: PROVINCIAL AND INTERNATIONAL RELATIONS DIVISION
FROM-DE HEAD OFFICE Assessing Division
ATTENTION R. D'Urello Director
HAV 4125-2 9412-1
RE: Article XIX - Canada - U-S. Income Tax Convention (1980)
We are writing to request clarification of Article XIX of the Canada-United States Income Tax Convention (1980) as it applies to employees of the U.S. Postal Services.
It is our understanding that the U.S. Postal Services is an agency of the United States. Therefore, employees of this agency, provided they were citizens of the United States, were exempt from tax in Canada pursuant to Article VI of the 1942 Convention.
Article XIX of the 1980 Convention no longer includes a reference to "any agency" of the United States. On this basis, it is our interpretation that remuneration paid to U.S. Postal Services employees would be "in respect of services rendered in connection with a trade or business carried on by a Contrasting State" and no longer exempt from tax in Canada as government service. This income would be governed by the provisions of Article XIV or XV.
As we are in the process of revising the Assessing operational manuals to incorporate the changes from the 1980 Convention, we would appreciate receiving clarification of this item as soon as possible.
G.F.V. Wilkie Director Assessing Division
NK: rf
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© Her Majesty the Queen in Right of Canada, 1986
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© Sa Majesté la Reine du Chef du Canada, 1986
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