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.
October 3, 1983
K.B. Harding
XXXX
This is in reply to your letter of September 3, 1983 concerning the status of the proposed Canada-United States Income Tax Convention.
The entry into force of the proposed Convention between Canada and the United States can only take place when all issues covered by the Convention have been finalized. The Convention signed in 1980 was not submitted to Parliament because other issues arose which required further negotiations between the two countries. On June 14, 1983, the two countries signed a Protocol to amend the earlier Convention. Since the proposed Convention cannot enter into force until it has been approved by Parliament and the instruments of ratification have been exchanged between the two countries, we cannot advise you when the proposed Convention will be finalized.
It should be noted that the current Canada-United States Income Tax Convention remains in effect until it has been superceded by the proposed Convention. If you have any specific questions with respect to the current Convention, we would gladly provide you with the appropriate information.
The Canadian Income Tax Act provides that if an individual has reported interest income from Canadian sources, dividends from taxable Canadian corporations or taxable capital gains realized on the disposition of Canadian securities, he may be entitled to an offsetting deduction. The deduction is equal to either
(a) the total amount of eligible interest income, eligible taxable dividends from taxable Canadian corporations and taxable capital gains (before deducting allowable capital losses) on disposition of Canadian securities, or
(b) $1,000.00
Accordingly, provided the interest or dividends received by you as a resident of Canada qualify for the above exemption, the amount of qualified interest or dividends will not be subject to tax in Canada if they do not exceed $1,000 Canadian. Any excess over $1,000 will be subject to tax at Canadian rates.
We trust the above is satisfactory for your purposes.
Yours sincerely,
Director Provincial and International Relations Division
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© Her Majesty the Queen in Right of Canada, 1983
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© Sa Majesté la Reine du Chef du Canada, 1983
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