5-920391
Olli Laurikainen
24(1) (613) 957-2116
Attention: 19(1)
September 21, 1992
Dear Sirs:
Re: Refund Interest
This is in reply to your letter dated January 31, 1992 concerning the computation of refund interest in respect of a Part XIII tax overpayment which was withheld pursuant to subsection 216(4) of the Income Tax Act (the "Act") and refunded pursuant to the filing of a return under subsection 216(1) of the Act.
Pursuant to subsection 216(3) of the Act, "Part I is applicable mutatis mutandis to payment of tax under..." section 216 of the Act. The provisions in Part I, such as subsection 164(3), which deal with the computation of refund interest do not pertain to the "payment of tax". Therefore, it is arguable that the refund interest provisions in Part I of the Act would be inapplicable to a non-resident who is filing a subsection 216(1) of the Act return.
It is our understanding that the Department has an administrative policy in this regard and as discussed during our telephone conversation (19(1) - Olli Laurikainen), we are referring your letter to our International Tax Programs Directorate for an explanation of that policy.
We trust the above is of assistance to you.
Yours truly,
for DirectorReorganizations and Foreign DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch