3 September 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
656756
Extra import data
{
"field_external_guid": [
"menu:://Federal Income Tax [CCH Tax ]/Tax Window Files/Tax Window Files/Tax Window Files/1990s/1991 [SE91_212.213 - JN91_146.148]/SE91_251 — Non-resident Withholding Tax in Non-arm's Length Situations - Meaning of \\\"Credited\\\""
],
"field_proprietary_citation": [],
"field_release_date_new": "1991-09-03 08:00:00",
"field_tags": []
}
Main text
Meaning of the Word "CREDITED"
          Question

Subsection 212(1) imposes Part XIII withholding tax on a non-resident when an amount is paid or credited or deemed to be paid or credited in satisfaction of certain amounts.

What is the Department's position regarding the meaning of "credited" for purposes of Part XIII tax in non-arm's length situations?

Department's Position

As set out in paragraph 5 of Information Circular 77-16R3, in Question 17 of the 1984 Revenue Canada Round Table and Question 84 of the 1986 Revenue Canada Round Table an amount is "credited" where a resident of Canada has set aside and made unconditionally available to the non-resident creditor an amount due to the non-resident. An amount is unconditionally available to the non-resident person when the non-resident has the immediate right to receive the amount, such as when it is recorded in the payer's books and is payable on demand.

Prepared by: Greg Middleton September 26, 1991

                                                           000251