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 October 4, 1984, concerning the Canada-United Income Tax Convention (Convention).
The Department of Finance Release dated August 16, 1984, a copy of which is attached, clearly indicates that the technical explanation under date of April 26, 1984, issued by the United States Treasury Department accurately reflects the understandings reached with respect to the interpretation and application of the various provisions of the Convention.
It is our view that the term "retirement plan" as used in the definition of pension in paragraph 3 of Article XVIII is broad enough to include payments out of a RRSP or RRIF whether set up by an employee or a self-employed person. Since the term pension is defined for the purposes of the Convention, it is our position that the reference to "retirement" benefits in paragraph 2(a) of Article XXI should not be restricted to employees and this appears to be in line with the view expressed in the technical explanation. Accordingly, it is our view that all RRSP trusts should be covered by paragraph 2(a) of Article XXI.
You may wish to contact the Internal Revenue Service to determine that this is also their view, 'since the United States is required to exempt from withholding tax any dividends and interest received by a qualifying trust, company or other organization in Canada.
We hope that this is satisfactory for your purposes.
Yours sincerely, Original Signed by P. PINKUS P. Pinkus Director Provincial and International Relations Division
Attachment KBH/jb
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