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.
951182
XXXXXXXXXX David R. Senécal
Attention: XXXXXXXXXX
May 4, 1995
Dear Sirs:
Re: Income Tax Exemption for Shipping Income of Residents of Greece
We are writing further to your recent request with regard to the tax status in Canada of the income from ships flying the Greek flag.
In accordance with the current Canadian Income Tax Act (the "ACT") and as indicated in the exchange of diplomatic notes dated September 30, 1929, it is the residency of the operator of the ship and not the country of the ship's registration that is considered for the purpose of determining whether income from the operation of the ship is exempt from tax.
Pursuant to the provisions of paragraph 81(1)(c) of the Act, the income for the year of a non-resident person earned in Canada from the operation of a ship in international traffic shall be exempt from taxation in Canada if the country where that person is resident grants substantially similar relief for the year to a person resident in Canada.
Based on the information provided, it appears that Canadian federal income tax is equivalent to the Freight Tax imposed by Greece. As it is our understanding that Greece continues to exempt residents of Canada from its Freight Tax, on the basis of the bilateral arrangement between Canada and Greece agreed to in the above-mentioned exchange of diplomatic notes, paragraph 81(1)(c) of the Act will operate to exempt the income for the year of a resident of Greece earned in Canada from the operation of a ship in international traffic.
We trust that the above will be of assistance to you in your dealings with the Greek authorities.
Yours truly,
for Director
Reorganizations and Foreign Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 1995
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 1995