28 May 1991 Income Tax Severed Letter

By services, 22 July, 2022
Language
English
Document number
Severed letter type
Miscellaneous
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
656559
Extra import data
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"menu:://Federal Income Tax [CCH Tax ]/Tax Window Files/Tax Window Files/Tax Window Files/1990s/1991 [JN91_149.150 - MA91_334.338]/MA91_086 — Deemed Dividend to Non-resident"
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"field_proprietary_citation": [],
"field_release_date_new": "1991-05-28 08:00:00",
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}
Main text
Vancouver District Office
           B.C. Tax Study Groups Round Table

Q. 27: Deemed Dividend to Non-resident under Paragraph 214(3)(a)

Paragraph 20(1)(j) provides relief to a Canadian resident shareholder who repays a loan that was previously included in computing his income by virtue of subsection 15(2). However, no relief is provided to a non-resident shareholder who repays a loan the amount of which was previously deemed to have been paid to the non-resident as a dividend by virtue of paragraph 214(3)(a) and on which withholding tax was paid.

What is the reason for this difference in the treatment of resident and non-resident shareholders?

Department's Position

This question raises a tax policy concern that should be directed by the questioner to officials from the Department of Finance.

Prepared by:   J.E. Harms
Date:          May 27, 1991
File:          7-911250
                                                           000086