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.
XXXX
CPP/UI/NRT 2nd Floor 266--8731
October 7, 1974
Dear Sirs:
Re: The Canada-Australia Tax Convention Article XII
The Calgary Alberta area has in the past had many of its' teachers leave for a teaching assignment in Australia with the anticipation of remaining in Australia for a period of 24 months or less.
They were under the assumption by virtue of the Canada-Australia Tax Convention Article XII that they would not pay tax in Australia if the conditions of the Article were met. Upon arriving in Australia they have been advised that they require a certificate from Canada indicating that they are a resident of Canada. If the teacher has left Canada and severed all residential ties in Canada, it is obvious he is not a resident of Canada and we cannot issue such a statement. The teachers are therefore being taxed_ under the normal Australian laws.
It has come to our attention that your commission has indicated that if the Canadian resident were to forward a Canadian T4 Supplementary to his employer in Australia prior to going to Australia, the Australian employer could then retain from withholding Australian tax and would file the T4 Supplementary with the Canadian Taxation Department, thereby indicating that the individual should pay tar, in Canada on his income for the period mentioned above. ,
Any information you may be able to supply concerning Australia's interpretation of the agreement and the manner in which visiting -teachers may be able to make best use of the agreement, would be appreciated.
Yours truly,
R. Critchlow Source Deductions
RC/jg 205 - 8th Avenue S.E.
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