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.
APR 29 1988
Specialty Rulings Directorate O.S. Laurikainen 957-2125
Subject - Proposed Revisions to Information Circular 76-12R
Article XXVII of the Canada-U.K. Tax Convention states that where a non-resident of Canada is taxed in Britain on the "remittance" basis, payments from Canada are subject to preferential withholding rates only if the payment is remitted to the United Kingdom. We have had several enquiries with respect to this matter. You may wish to consider revising Information Circular 76-12R4 to indicate that with respect to payments made to residents of the United Kingdom, the reduced withholding rates only apply in respect of amounts remitted to the United Kingdom. The payers of these amounts should be made aware that in cases where the payee is to a Canadian financial institution while the beneficial owner of the funds is a resident of the United Kingdom, the full 25% withholding rate may apply.
ORIGINAL SIGNED BY ORIGINAL SIGNÉ PAR R.J.L. READ Director General Specialty Rulings Directorate Legislative and Intergovernmental Affairs Branch
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© Her Majesty the Queen in Right of Canada, 1988
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© Sa Majesté la Reine du Chef du Canada, 1988
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