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.
19(1) E.E. Campbell
(613) 957-2067
September 22, 1989
19(1)
We have your letter of June 27, 1989, regarding the tax status of the above-noted. You are requesting a refund of amounts paid to 19(1) from Canada on the basis that he is not taxable in Canada by virtue of section 18(a)(ii) of the Agreement on the Privileges and Immunities of the Agency.
While we do not have a copy of the Agreement, we have noted that an Order was issued by the Governor in Council under the Privileges and Immunities (International Organizations) Act which deals with the tax status of the organization and its representatives and officials in Canada. A copy of this is attached. Section 3(1) of the Order refers to Article V of the Convention with the United Nations.
While the order confers certain tax relief on various individuals, section 3(3) of the Privileges and Immunities Act, under which the Order was issued states:
"Nothing in any order made under subsection (2) shall
exempt a Canadian citizen residing or ordinarily
resident in Canada, from liability for any taxes or
duties imposed by any law of Canada."19(1) A person
may be physically outside of Canada and still be a resident for
tax purposes.
It is possible that 19(1) is not resident in Canada and thus is not taxable on that basis. However, we do not believe that he is exempt because he works for the 19(1) since you indicate that he is a citizen.
19(1) tax status is a matter between himself and this department, and if he were found to be a non-resident it could result in a refund of amounts paid. If he is taxable in Canada and you are paying his tax, then there is an added benefit from employment in the amount of the tax paid and thus he could be subject to further tax on that amount.
Were 19(1) found not to be taxable in Canada, you would have to resolve the question with him. Any refund would be payable to him unless he otherwise directs.
If 19(1) continues to be a resident of Canada for taxation purposes, he would be entitled to a credit for any levy which is paid to the organization, provided it meets the requirements of section 126(3) of the Income Tax Act.
Yours sincerely,
C. Savage A/Director Provincial and International Relations Division
EEC/jb no2-197
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