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.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
941658
XXXXXXXXXX G. Middleton
Attention: XXXXXXXXXX
October 20, 1994
Dear Sirs:
This is in reply to your letter of June 22, 1994 requesting our views on the tax treatment for payments under a Registered Retirement Income Fund ("RRIF") made to a resident of the United Kingdom ("U.K.") pursuant to Article 17 of the Canada-U.K. Income Tax Convention (the "Convention").
We confirm your understanding that a payment out of a RRIF is considered to be a payment under a "retirement plan" referred to in the definition of "pension" in paragraph 3 of Article 17 of the Convention. If a payment from a RRIF qualifies as a "periodic pension payment" as defined in section 5 of the Income Tax Conventions Interpretation Act (the "ITCIA"), it is our position that such a payment would fall under the meaning of "pension" in Article 17 and would be exempt from Canadian non-resident withholding taxes pursuant to paragraph 1 of Article 17 of the Convention.
On the other hand, if a payment from a RRIF does not qualify as a "periodic pension payment" as defined in the ITCIA, it would not fall under the meaning of "pension" in paragraph 3 of Article 17 and would be subject to tax at the general Part XIII tax withholding rate of 25%.
We trust that our comments will be of assistance to you.
Yours truly,
for Director
Reorganizations and Foreign Division
Rulings Directorate
Policy and Legislation Branch
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