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 your telephone conversation with the writer on April 5 concerning payments to U.S. residents for the use of videotaped TV programs and computer software programs.
With respect to payments for videotaped TV programs, it is our view that such payments are subject to non-resident withholding tax pursuant to subsection 212(5) of the Income Tax Act (the "Act") and are not exempted under Article XIIIC of the Canada-U.S. Income Tax Convention, notwithstanding our previous opinion to the contrary given to you on October 14, 1981.
We regret any inconvenience caused by our previous opinion. We point out however that, as stated in paragraph 24 of Information Circular 70-68 such opinion are not binding.
With respect to payments for computer software programs, the Department has recently adopted the position that as of July 1, 1983, such payments will be subject to non-resident withholding tax. This position was announced to the public in January 1983 by way of a Release, a copy of which is enclosed for your perusal.
We trust the above satisfactorily explains the Department's position.
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 1983
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, 1983
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