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.
XXX
This is in reply to your letter of July 30.
You have asked whether a resident of Austria, a non-resident of Canada, who deposits money to a bank in Canada would be taxable in Canada on the interest earned from the deposit. You have also asked how a person would obtain a refund of tax withheld where it is established that the tax was not exigible.
We presume you are describing a deposit to a savings account in Canadian dollars where the interest is to be paid in Canadian currency. If such is not the case you may wish to consider the comments in the enclosed Interpretation Bulletin.
Based on the limited information provided, it is our view that a 25% tax would be exigible on the interest credited to your bank account. The bank would be required to withhold and remit the tax to the Receiver General. The Canada-Austria Income Tax Convention Act, 1989 provides, however, that where the interest would be subject to tax in Austria the withholding rate is 15%.
In response to your inquiry concerning a refund of taxes withheld, we refer you to the counts in paragraphs 67 to 74 of Information Circular 77-16R, which we have also enclosed.
We trust the foregoing satisfactorily answers your inquiry and that our comments and enclosures will be useful to you.
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© Her Majesty the Queen in Right of Canada, 1984
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, 1984
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