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.
E.E. Campbell
19(1) 613-957-2067
September 14, 1989
Re: Article 23, Canada-Sweden Income Tax Convention
In our letter of July 11, 1989 we indicated to you that we had written to the Swedish competent authority to request its views on the situation which you had outlined in your letter to us of March 9, 1989. We have received a response from Sweden.
They do acknowledge that the situation could be interpreted as you have indicated and thus the refund of the tax would not jeopardize the tax position of the dividend in Sweden. However, the object and purpose of the Convention would in their view be over ridden and a double exemption given to the income. Article 23(2)(d)(i) has the purpose of ensuring that dividends from the other contracting state shall not be exempted unless the profits have suffered taxation comparable to the Swedish company tax.
We did not indicate to the Swedish authorities what we believed the correct position should be, so as to elicit a completely objective opinion. As noted previously we believe that the Swedish position is correct.
We hope that this will be of assistance to you.
Yours sincerely,
A/Director Provincial and International Relations Division
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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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