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.
May 27, 1981
XXXX
This is in reply to your letter of May 6 which was forwarded to this Division by the Honourable William H. Rompkey, Minister of Revenue. Canada, Taxation.
In your letter ou indicated that during XXXX
You also stated that you had made enquiries in 1980 with your accountant in England and with the Revenue Canada District Office in Kingston as to whether the Canada-United Kingdom Tax Agreement was under re-examination. You were apparently advised that no changes had been made to the Agreement, however, on a subsequent enquiry on April 27, 1981, the Kingston District Office stated that changes had been made to the article dealing with professors under the recently ratified Canada-United Kingdom Tax Convention which entered into force on December 7, 1980.
The draft Tax Convention between Canada and the United Kingdom was issued to the public on September 8, 1978. Since the article dealing with professors was eliminated in this earlier draft, it is unfortunate that you were incorrectly advised in 1980 as to the taxation status of professors under the then proposed Tax Convention.
We regret that we have no alternative but to assess XXXX in accordance with the provisions or the Income Tax Act and the present Canada-United Kingdom Tax Convention. The treaty makes no provision for people who entered into contract prior to the entry into force of the present Convention, other than for situations covered by paragraph 4 of Article 28 of the Convention (copy attached). Since your situation is not exempted by the above article the fees received by you would be subject to tax in Canada in the year received.
Finally, we wish to assure you that our Department realizes that the amount of tax that an individual is required to pay is significant to him and we try to treat all enquiries, whether large or small, in the same manner.
We trust this explanation will adequately explain our Department's position.
Yours sincerely,
Original Signed by
P. Pinkus Director Provincial and International Relations Division
Attachment
c.c. Kingston District Office KBH/jb
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© Her Majesty the Queen in Right of Canada, 1981
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© Sa Majesté la Reine du Chef du Canada, 1981
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