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 XXX
This is in response to your letter of June 2 dealing with a withholding tax exemption by the XXX when purchasing Canadian commercial paper.
Your first query is, will this Certificate of Exemption (NR-33161) cover an exemption from withholding on interest paid on Canadian commercial paper? We are of the view that a Certificate of Exemption provided under the provisions of subsection 212(14) cannot be extended to cover Canadian commercial paper as the certificate only dealt with items mentioned in subparagraph 212(1)(b)(iv).
The foregoing information reflects our current position in this area. You may wish to approach us at a later date should our Department of Finance be prompted to amend the current provisions of our Income Tax Act to include "commercial paper".
In reply to your second query, a certificate issued under subsection 212(14) of the Act is issued to the specific named entity, thus an application is necessary to grant the exemption to the specific person involved. Based upon our reply to your first query, that commercial paper is not covered by a Certificate of Exemption, the reply to your second query is negative as well.
Should any change in our position on this matter occur, we will correspond with you at that time.
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, 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
Email this Content