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
February 2, 1988 T.B. Kuss (613) 957-2117
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Re: Canadian Withholding Tax on Pension Income Canada-U.S. Income Tax Convention, 1980 (the "Convention")
This is in reply to your letter dated December 7, 1987 regarding the above-referenced matter.
Please find attached a copy of Article XVIII of the Convention which deals with pensions and annuities. We have not included a complete copy of the Convention as this is not a service we provide.
We have also attached Interpretation Bulletin IT-163R2 dated September 19, 1985 published by Revenue Canada, Taxation. IT-163R2 discusses the election available under section 217 of the Income Tax Act (the "Act"). It is not clear from the information you have provided whether this election would be advantageous to yourself, but we have included the bulletin for your consideration.
If you decide to make such an election it should be forwarded to the following address.
Revenue Canada, Taxation Non-Resident Assessing Section 875 Heron Road Ottawa, Ontario K1A lA2
In this regard see paragraphs 15 and 16 of IT-163R2 .
Also see paragraphs 18, 19 and 20 of IT-163R2 regarding a reduced rate of withholding tax at source. We have enclosed Form NR5 for your information.
We have also enclosed the Revenue Canada publication entitled Living Outside Canada.
You may be eligible for a foreign tax credit in the U.S. in respect of taxes paid to Canada (refer to the attached copy of Article XXIV of the Convention). However this would be claimed when you file your U.S. income tax return. Please contact the U.S. tax authorities in this regard.
We hope these comments are of assistance.
Yours truly,
for Director Reorganizations and Non-Resident Division Specialty Rulings Directorate Legislative and Intergovernmental Affairs Branch
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© Her Majesty the Queen in Right of Canada, 1988
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© Sa Majesté la Reine du Chef du Canada, 1988
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