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.
INDEXED
October 2, 1984
K. B. Harding
Dear Sirs:
This is in reply to your letter of August 10 wherein you requested confirmation that the XXXX would be exempt from United States, non-resident withholding tax on dividends and interest received on its United States investments.
It is our understanding that the wording in paragraph 2 of Article XXI of the Canada-United States Income Tax Convention, 1980 (Convention) was amended because it was not broad enough to cover unit trusts of life insurance companies investing funds on behalf of pension plans. Accordingly, provided the above trust met all the conditions of the revised paragraph 2(b) of Article XXI, we would expect that the United States authorities would exempt any dividends and .interest received by it from United States withholding tax. Since the question set out in your letter deals with United States withholding tax, we would suggest you refer this matter to the Internal Revenue Service.
It is our view that the term "retirement plan" in the definition of "pension" in paragraph 3 of Article XVIII includes a registered retirement savings plan. Presumably, the words retirement benefits,, as used in paragraph 2(a) of Article XXI, will also be interpreted by the United States authorities to include such plans.
Yours sincerely,
Original Signed by P. PINKUS P. Pinkus Director Provincial and International Relations Division
KBH/jb
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 1984
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 1984
Email this Content