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.
Dear Sirs:
RE: Canada-U.S. Income Tax Convention
This is in reply to your letter of March 4, 1985 concerning payments made by residents of Canada to residents of the U.S. for the right to use works on videotape in television broadcasting.
We confirm that payments for the right to use works on videotape in television broadcasting which would otherwise be subject to Part XIII tax pursuant to subsection 212(5) of the Income Tax Act, may be exempted from that tax pursuant to Article XIIIC of the Canada-U.S. Tax Convention (1942), and will remain so under the greater relief provisions of Article XXX of the Canada-U.S. Tax Convention (1980) until the end of the taxpayer's first taxation year that begins on or after January 1, 1985. Thus, as in -your example, a taxpayer with an October 31 year-end would not be subject to the reduced rate of withholding under Article XII of the new Convention in respect of such payments made before November 1, 1986. We note that the foregoing comments do not apply in respect of videotaped versions of works that were produced and commercially exploited as motion picture films.
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, 1985
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, 1985
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