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 10, 1985
Mr. Phil Pinkus Director of International and Provincial Relations Revenue Canada, Taxation Heron Road Ottawa, Ont.
Dear Mr. Pinkus;
I am writing to you at the suggestion of XXXX who thought that perhaps the matter described below falls under your jurisdiction.
Our association's concern is with Article XXI of the U.S.-Canada Income Tax Convention, which exempts interest and dividends paid to trusts "established to provide pension, retirement, or other employee benefits" from the nonresident alien tax.
As you know, many pension and profit sharing plans hold their investment portfolios in "street name" i.e., the securities are registered in the name of the broker. We understand that your Department has a procedure under which U.S. banks may obtain certificates of exemption from the Canadian tax authorities with respect to interest and dividend payments on securities held for beneficial owners who themselves qualify for exemption under Article XXI, but that no parallel procedure is available to securities firms.
As you can see from the attached correspondence, we requested on March 11, but have yet not received, copies of the applicable rules and procedures. After studying these, we may wish to explore with Revenue (Taxation) the feasibility of the XXXX being placed on the same footing as our bank competitors.
I would greatly appreciate your help in expediting a response to our March 11 request, and advising us as to how best to proceed further in this matter.
Sincerely yours.
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© Her Majesty the Queen in Right of Canada, 1985
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© Sa Majesté la Reine du Chef du Canada, 1985
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