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.
December 17, 1984
K. B. Harding
XXXX
This is in reply to your letter of August 31, 1984, wherein you requested the procedures to be used to recover tax withheld on dividends received by the XXXX.
The Canadian Income Tax Act does not provide for an exemption from withholding tax on dividends received by a non-resident pension fund. In addition, the Canada-United Kingdom Tax Convention does not provide for a specific exemption from withholding tax in Canada with respect to United Kingdom pension funds investing in Canada or vice versa. Accordingly, we regret that there is no method available to recover the tax withheld on dividends received by the United Kingdom pension fund.
We are attaching a copy of Information Circular 77-16R2, paragraph 32 outlines that qualifying pension funds may receive a Certificate of Exemption from Revenue Canada, Taxation with respect to withholding tax on certain types of interest payments made to such organizations. While the Certificate of Exemption does not apply to dividends, this could be used in the future if the pension fund should invest in bonds, debentures or similar obligations in Canada.
We regret that our reply could not be more favourable.
Yours sincerely,
Director Provincial and International Relations Division
Attachment
KBH/jb
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© Her Majesty the Queen in Right of Canada, 1984
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© Sa Majesté la Reine du Chef du Canada, 1984
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