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.
W.G. Pembroke
April 30, 1980
Dear Sirs:
Re: Annuities received
This is in reply to your letter of April 9 concerning annuity payments being received by your client, a former resident of the U.K.
As we understand your client had bought annuities in the U.K. over 25 years ago and she has been a resident of Canada for the past 3 years. She has been receiving her annuity payments in Canada and there has been no withholding of U.K. taxes on these payments.
Yon enquire of us whether all the interest being received on the annuity payments is subject to tax in Canada or only such portion of the interest that was earned since her becoming a Canadian resident?
We are of the view that all the interest received on these annuity payments is subject to tax in Canada. The U.K. waives their right to tax the annuity amounts by the operation of Article 16 of the Canada-U.K. Tax Agreement. Accordingly, the interest received of the annuity is taxable in Canada as it is received.
Yours truly,
for Director Non-Corporate Rulings Division
Can-U.K. Convention Art. 16 s. 16
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