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.
This is in reply to your memorandum of September 19, 1980 in connection with the above-noted taxpayer. The details of this case are set out in our previous memoranda to you of October 1979 and March 11, 1980.
As requested, we have again reviewed the facts of the case as set out in your memorandum and in your attached working papers. In response to the possible approaches to taxation which you suggest, we have the following comments:
Approach No. 1
If XXX is in fact a non-resident of Canada, he must be carrying on a business in Canada from which the income in question arises, in order for the provisions of Part I of the Act to be applied in respect of such income. It remains our view that XXX
Approach No. 2
If XXX is in fact a resident of Canada, he would be subject to tax under Part I of the Act in respect of his world income. On the basis of our understanding of the facts in this regard.
XXX However, we feel that if, XXX not a resident in Canada XXX
Approach No. 3
If XXX is in fact a non-resident of Canada, Part XIII of the Act would be applicable in respect of the amounts which are paid to him by XXX by virtue of subsection 212(13.2) of the Act, unless such amounts are paid "pursuant to an agreement in writing entered into before May 7, 1974".
We shall keep you advised of further developments in this regard. Your working papers are returned herewith.
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© Her Majesty the Queen in Right of Canada, 1981
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© Sa Majesté la Reine du Chef du Canada, 1981
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