3 October 1990 Ruling 902443 F - Foreign Tax Credits - Status of Taiwan as a Government

By services, 18 January, 2022
Official title
Foreign Tax Credits - Status of Taiwan as a Government
Language
French
CRA tags
126, 20(11), 20(12)
Document number
Citation name
902443
Severed letter type
Ruling
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
630596
Extra import data
{
"field_external_guid": [],
"field_proprietary_citation": [],
"field_release_date_new": "1990-10-03 08:00:00",
"field_tags": []
}
Main text
24(1) 902443
  R. Biscaro
  (613) 957-2122

Attention:  19(1)

October 3, 1990

Dear Sirs:

This is in response to your letter of September 10 concerning the status of Taiwan as a government for purposes of the foreign tax credits available under section 126 of the Income Tax Act.

The status of the Taiwan government is some what peculiar in that it does not enjoy some of the privileges attaching to other states. Canada does not recognize the government yet it does not prohibit commercial dealings with that country, as is evident from the large number of goods available for sale in Canada that are made in Taiwan. The taxes paid to Taiwan should logically be allowed as a credit to the extent that they meet the conditions set out in section 126.

It is our view that Taiwan would meet the condition of being a "government" within the expression "government of a country other than Canada" for the purposes of section 126 and as well for subsections 20(11) and (12).

We trust that our comments will be of assistance to you.

for DirectorReorganizations and Non-Resident DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch