September 7, 1982
TO: Halifax District Office Attention: Mr. J. Glennie
FROM: HEAD OFFICE P. Clemens 593-6201
RE: XXXX
Enclosed are copies of the taxpayer's correspondence relating to the opinion given in our letter of July 30, 1982 to the above taxpayer.
As we discussed on August 19, 1982, provided the facts as outlined in the July 30, 1982 letter are correct XXXX in our opinion Article 27A of the Canada-U.K. treaty would exempt the taxation of those profits in Canada.
In any case, a waiver from withholding tax is merely an administrative convenience to be granted at the discretion of your District. In particular, if you are not satisfied that the facts as given are correct, a waiver should probably not be granted.
While the procedures outlined in Information Circular 70-6R do not strictly require the taxpayer to inform us that these matters had already been reviewed by your District Office (since they were not in connection with a tax return already filed), we feel that the taxpayer should have done so as a matter of common courtesy. We would appreciate receiving your comments and conclusions after reviewing the enclosed documents, since we intend to contact the taxpayer expressing our concerns with this request.
Chief Mines, Oils & Forest Industries Section Specialty Corporations Rulings Division Corporate Rulings Directorate Legislation Branch
Enclosures