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.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department. Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
This is in reply to your letter of March 28, 1983 concerning paragraph 212(1)(h) of the Income Tax Act (the Act) and Article XVII of the Canada-U.K. Income Tax Treaty (the Treaty).
You have asked whether a pensioner resident in the U.K. receiving a pension from a source in Canada in entitled to the relief under Article XVII of the Treaty in application to the amount determined pursuant to paragraph 212(1)(h) of the Act.
Article XVII(1) of the Treaty refers to "Pensions ... arising in a contracting state ... and ... of the total amount thereof paid ... the contracting state shall exempt from tax ten thousand Canadian dollars ..."
You question whether this exemption applies in respect of the amount determined pursuant to paragraph 212(1)(h) of the Act or in respect of the full amount of the pension payments in a particular year (which may be greater).
While the matter is not free from doubt, we are of the view that the intended interpretation of the treaty provision is to exempt from tax in Canada the amount which would otherwise be subject to tax under paragraph 212(1)(h), which amount may of course be less than the amount of the pension payments.
We trust these comments will be of assistance.
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© Her Majesty the Queen in Right of Canada, 1983
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© Sa Majesté la Reine du Chef du Canada, 1983
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