26 September 1989 Income Tax Severed Letter AC58512 - Withholding Tax Exemption on Dividend and Interest Income under Canada-U.S. Income Tax Convention

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.

5-8512
                                                  A.B. Adler
                                                  (613) 957-8962

19(1)

September 26, 1989

Dear Sirs:

This is in reply to your letter of August 11, 1989 in which you requested our views whether a U.S. trust that is an Individual Retirement Account ("IRA") could be exempt from Canadian withholding tax on Canadian source dividend and interest income by reason of Article XXI, paragraph 2, of the Canada-United States Income Tax Convention, 1980 ("Convention").

In our view a U.S. trust that is an IRA may qualify for any possible exemption from withholding taxes on Canadian source dividend and interest it will be necessary for the payer of such amounts to obtain a photocopy of the letter of exemption from the IRA trust which letter would be issued by this Department. The procedures to be followed in order to obtain such exemption are set out in paragraph 76 of our Information Circular, No. 77-16R3.

We trust that our comments will be of assistance to you.

Yours truly

for Director Financial Industries Division Rulings Directorate