14 February 1985 Income Tax Severed Letter

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.

February 14, 1985

Ms. C. Muirhead Non Corporate Rulings Division Non Resident, Business & Property Income Section Revenue Canada, Taxation 875 Heron Road

Ottawa, Ontario K1A OL8

February 14, 1985

Attention: Ms. Muirhead

We are writing to request your technical interpretation to certain provisions of the Canada Income Tax Act; Canada - U.S.A. Income Tax Convention (1980); and the Canada - U.S.A. Income Tax Convention (1942).

Situation

1. An individual is a citizen of Canada but is a resident of the Cayman Islands.

2. This individual will be sojourning the U.S. during 1985 for a period in excess of 183 days. We understand that results in this individual being a resident for U.S.A. Federal income tax purposes.

3. This individual has an RRSP with a Canadian depositary.

4. The individual will terminate the RRSP while sojourning in the U.S.A. and after sojourning in the U.S.A. in excess of 183 days.

Technical Interpretation

5. We understand that the 1980 Convention applies to the taxation, by Canada of the termination payments from the RRSP.

6. We understand that Article XXX (5) of the 1980 Convention permits the individual to have the provisions of Article XI (1) of the 1942 Convention apply if the termination payment from the RRSP is paid during 1985. This effectively limits Canada to receiving 15% of the gross termination payments.

Ms. Muirhead we will appreciate receiving your written comments. If you require further information, please do not hesitate to contact myself at XXXX

Yours truly,

XXXX