| 19(1) | HBW 4131-N1 |
| Al Watson | |
| 957-2072 |
December 13, 1990
Dear 19(1)
We are writing further to your letter of December 3, 1990, concerning the application of the coverage provisions of the Agreement on Social Security between Canada and the Netherlands.
With respect to your current employment arrangement with a 19(1) we agree that the provisions of Article VI would apply providing the period of detachment does not exceed two years.
Providing our understanding of the changes in your employment position is correct, in that you will become an employee of 19(1) it is our view that this would constitute a new assignment. Therefore, the provisions of Article VI(2) would apply and you would be subject to the legislation of Canada for a further period not exceeding two years. An extension beyond the two years may be permitted under paragraph 6 of Article VI, with the common consent of the competent authority of both parties.
Our comments with respect to your further questions on taxation matters are as follows:
| Question: | Does the Canada-Netherlands Agreement also affect residence status for income tax? |
| Response: | With respect to taxation issues, the provisions of the Canada-Netherlands Income Tax Convention would apply and in this regard we have attached a copy of Article XII, which deals with remuneration for services. |
| Question: | How do I obtain proof of residence status? |
| Response: | The Department will provide a letter confirming the residency status of an individual or corporation. A request for this confirmation should be made in writing to the taxation office where your income tax return is normally filed. |
We trust this additional information is of assistance.
Yours sincerely,
Christine SavageActing DirectorProvincial and International Relations Division
file copy reading file sequence filecontrol # 3-111 disc # 4