10 April 1990 Income Tax Severed Letter HBW941223B F - Sovereign Immunity

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.

April 10, 1990

Dear 19(1)

Re:  Sovereign Immunity 24(1)

We are writing in reply to your letter dated February 21, 1990, concerning tax exemption for  24(1) Article XXI of the Canada-United States Income Tax Convention does not apply as the 24(1) is not a resident of either contracting state.

24(1) may be eligible for exemption from Canadian withholding tax under the Doctrine of Sovereign Immunity.  In this regard, we have enclosed Information Circular 77-16R3 for your reference. Paragraph 47 of the Circular describes our department's policy with respect to sovereign immunity.  Before we can made a determination as to the status of  24(1) we will require the following information:

1)     A copy of the investment management agreement between 24(1)

2)     A statement form 24(1) confirming that an annual list of Canadian investments to which this exemption applies will be forwarded to this division.  The list should include the quantity of shares owned and should be effective December 31, 1989.

Upon receipt of the above documentation, we will give the matter our prompt attention.  We look forward to hearing from you soon.

Yours sincerely,

C. SavageA/DirectorProvincial and International Relations Division

JW/jb no6-29File copySequence file Author's copyReading fileAccess to Info(2)