10 April 1990 Income Tax Severed Letter ACC9191 - Canada-Ireland Income Tax Convention

Jim Wilson
                 19(1)                     613-957-2063
                                           HBW 4125-I2
                                           HBW 6591-I2

                                           EACC 9191

April 10, 1990

Dear          19(1)

Re:           19(1)

We are writing in reply to your letter dated March 5, 1990, concerning the interpretation of the Canada-Ireland Income Tax Agreement (the "Agreement").

Pursuant to paragraph 2 of Article XV of the "Agreement", we concur
with your position that     19(1)     being a resident for domestic
taxation purposes of both Canada and Ireland during the         
24(1)                       would not be a resident of either
country during that period within the meaning of paragraph (e) of
Article II of the "Agreement".  Therefore, the provisions of
Article XI would not apply to pension payments received by    
19(1)       during that period and Canada shall, subject to the law
of Canada, allow a credit against Canadian tax of Irish tax paid by 
19(1)    in respect of income from sources within Ireland during
that period.

We would like to point out that a person ceases to be resident in Canada immediately upon emigration. Where an individual emigrates from Canada to Ireland, Canada would not tax the individual on pensions arising in Canada because he would meet the definition "resident in Ireland" in Article II and thus would be exempt from Canadian tax in accordance with paragraph 1 of Article XI.

We trust you will find this to your satisfaction.

Yours sincerely,

A/Director Provincial and International Relations Division