Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues:
Request for confirmation of the intent of Ruling A (in Ruling # 3-980214) in regards to the application of subsection 212(1)(b)(vii) of the Act to the payment of the Premium referred to therein.
Position TAKEN:
Confirmation given.
Reasons FOR POSITION TAKEN:
Provide ruling applicant with the comfort and certainty intended by Ruling A.
XXXXXXXXXX
XXXXXXXXXX 981238
XXXXXXXXXX
Attention: XXXXXXXXXX
XXXXXXXXXX, 1998
Dear Madam:
Re: Advance Income Tax Ruling - XXXXXXXXXX # 980214 (the “Ruling”)
This is in reply to your letter dated XXXXXXXXXX in which you requested confirmation of the intent of Ruling A in regards to the application of subsection 212(1)(b)(vii) of the Act to the payment of the Premiums referred to therein.
Provided that the interest payable on the XXXXXXXXXX Bonds and Debentures to non-residents of Canada is exempt from withholding tax pursuant to 212(1)(b)(vii) of the Act, we hereby confirm that the payment of the Premiums referred to in Ruling A will be exempt from non-resident withholding tax by virtue of subparagraph 212(1)(b)(vii) of the Act.
Yours truly,
for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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