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.
Principal Issues:
Does Article XVI of the US convention exempt earnings of a Canadian resident from tax in Canada?
Position:
No.
Reasons:
Wording of treaty and purpose of treaty.
XXXXXXXXXX 953203
January 22, 1996
Dear Sir:
Re: XXXXXXXXXX
We are writing in response to your letter dated December 7, 1995 and pursuant to our telephone conversations of December 12 and 13, 1995 (XXXXXXXXXX/Stalker) in respect of Article XVI of the Canada-U.S. Convention (the "Convention").
As discussed with you, Article XVI of the Convention does not exempt earnings from entertaining of a Canadian resident from Canadian tax. Those earnings, whether from employment or self-employment, are subject to tax in Canada as set out in sections 2 and 3 of the Income Tax Act (Canada).
This letter only addresses the result of the application of Article XVI of the Convention to your client and should not be construed as an acceptance by Revenue Canada that XXXXXXXXXX is self-employed.
Yours truly,
for Director
Reorganizations and Foreign Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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