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:
Re: Article XII of the Canada-United States Income Tax Convention. 1980 (the "Convention")
This is in reply to your letter dated December 17, 1990.
In our opinion, a payment arising in Canada made by a Canadian resident to a person resident in the United States (who does not have a permanent establishment in Canada) for services of an industrial, commercial or scientific character performed by the resident of the United States for the Canadian resident, which payment is dependent in whole or in part upon use, production or sales of goods or services, or profits and is a payment to which subparagraph 212(1)(d)(iii) applies, is not a "royalty" as defined in paragraph 4 of Article XII of the Convention.
The opinion expressed herein is not an advance income tax ruling and, in accordance with paragraph 21 of Information Circular 70-6R2 dated September 28, 1990, is not considered binding on theDepartment.
Yours truly,
Reorganization Non-Resident DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch
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