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 Sirs:
This is further to our telex of today concerning the commercial paper the XXX is considering selling in the United States of America (U.S.A.) to United States (U.S.) residents in U.S. funds.
XXX
The interest payments made by the U.S.A. branches on the commercial paper would be exempt from withholding tax by virtue of clause 212(1)(b)(iii)(E) of the Income Tax Act. Interest paid by your head office in XXX on certificates of deposit would be exempt from withholding tax on the basis of clause 212(1)(b)(iii)(D) of the Act. The Department's position on this matter is expressed in paragraph 6 of Interpretation Bulletin IT-350R, a copy of which is enclosed for your ease of reference. The interest on promissory notes issued by your Head Office would also be exempt from withholding if the XXX would be obliged to provide a reserve XXX in respect to the amount of the notes if they were payable in Canadian currency and the amounts would be considered a deposit pursuant to the by-laws of the Canada deposit Insurance Corporation.
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© Her Majesty the Queen in Right of Canada, 1980
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 1980
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