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.
March 17, 1971. XXXX
In response to your request we enclose a copy of the Australia - Canada Income Tax Agreement that, for the purposes of Canadian tax, came into force in the 1953 taxation year. We also enclose copies of our Information Bulletin "L1 on the subject of visiting teachers and a comparative listing of the professor and teacher articles from the fourteen agreements or conventions with other nations in which there are such articles. The order in the listing is chronological beginning with the oldest tax treaty year.
We understand that it is the intention of the Government to seek renegotiation of the tax treaties in order to remove the teacher exemptions. In the 1969 White Paper entitled "Proposals For wax Reform" the matter is referred to in paragraph 2.26 as follows:
"Under our tax treaties with Britain, the United States and a number of other countries, professors and teachers who have come to Canada temporarily are exempt from Canadian income tax on their teaching; salaries for two years. In some circumstances they are not taxed by the country where they are normally resident. Given the present scale of salaries of professors and teachers this arrangement is unjustified. We intend to remove this exemption, on a reciprocal basis, from our treaties and to tax such persons like others.
Yours very truly, C.W. MAVOR
C.W. Mavor, Director, Provincial and International Relations Division.
Encls. CWM/ba
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© Her Majesty the Queen in Right of Canada, 1971
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© Sa Majesté la Reine du Chef du Canada, 1971
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