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 XXX
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 XXX 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."
XXX A person may be physically outside of Canada and still be a resident for tax purposes.
It is possible that XXX is not resident in Canada and thus is not taxable on that basis. However, we do not believe that he is exempt because for the XXX since you indicate that is a citizen.
Provided the table laid down by Canada Mortgage and Housing Corporation is a reasonably accurate assessment of the value of the utilities used, we would not object to its use for valuing the amount of the taxable benefit.
We trust the above will be of assistance and if you require any further information, please contact the writer.
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© Her Majesty the Queen in Right of Canada, 1989
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© Sa Majesté la Reine du Chef du Canada, 1989
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