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.
July 28, 1986
Revenue Canada, Taxation Reorganizations and Non-Resident Division Specialty Rulings Directorate Legislative and Intergovernmental Affairs Branch Ottawa, Ontario K1A 0L8
Attention: Mr. G. Thornley
Dear Mr. Thornley:
Re: Canada-Brazil Income Tax Convention
The purpose of this letter is to confirm our telephone conversation of July 22, 1986 in which we discussed tax sparing benefits available under the subject treaty.
Some time ago, the Bank requested confirmation of its interpretation of several treaty provisions. The Department's response, dated February 27, 1986, stated that where interest arises in Brazil and is paid to a permanent establishment situated in a third state then the deduction from tax referred to in paragraphs 2 and 3 of Article 22 of the Treaty does not apply to the interest. As a result of our discussion last week, we understand that response does not reflect the Department's position with respect to Article 22 and that, in fact, the Bank is entitled to claim spared tax benefits for loans booked at permanent establishments in third states.
Yours truly,
XXXX
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© Her Majesty the Queen in Right of Canada, 1986
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© Sa Majesté la Reine du Chef du Canada, 1986
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