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.
CTF - 1990 Conference Report
QUESTION I 69
Withholding Tax - Dividends
Paragraph 2(a) of Article X of the Canada-U.S. Income Tax Convention reduces the rate of withholding tax on dividends if the beneficial owner of the dividends is a company which owns it beast 10% of the voting stock of the company paying the dividends. Is this 10% test determined by considering the number of votes, the number of voting shares or in some other manner?
DEPARTMENT'S POSITION
For purposes of paragraph 2(a) of Article X of the Canada-U.S. Income Tax Convention, it is the Department's opinion that the 10% test is determined by reference to the number of issued and outstanding shares of the company which entitle the holder to a vote.
Prepared by: R. Biscaro
October 26, 1990
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