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:
Whether payor is required to withhold taxes from payment to non-resident.
Position:
No.
Reasons:
The payment will constitute an ACB reduction, rather than income, to the recipient.
E9618465 describes such payments as ACB reductions.
E9611637 describes the consequences of similar payments to non-residents.
NISA Administration
P.O. Box 6100 971612
Winnipeg, Manitoba
R3C 3A4
Attention: John Elrick
June 23, 1997
Dear Sirs:
Re: Arable Acres Supplementary Payment Program ("AASPP")
This is further to our conversation (Brooks/Elrick) of June 17, 1997 in which you requested us to confirm whether there is a requirement under the Income Tax Act to withhold taxes from payments under the AASPP to non-residents.
It is our understanding that the AASPP is a result of an agreement between the Government of Canada and the Province of Alberta to provide payments to owners of arable land that was not eligible for assistance under the Western Grain Transition Payments Program. Provided that the documentation clearly describes a payment under the AASPP as one that is to be treated as a reduction to the adjusted cost base of particular real property, the payment will not constitute income in the hands of the recipient. Accordingly, if the payment is to a non-resident person, there will be no requirement under section 215 of the Income Tax Act to withhold tax.
We trust that our comments will be of assistance to you.
Yours truly,
R. Albert
A/Chief
Business, Property and Employment Section I
Business and Publications 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, 1997
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, 1997
Email this Content