,canada ,co/ums                       #a
& ,rev5ue ,ag5cy

          ,9t]pret,n ,bullet9
    
,subject3 ,9come ,tax ,act
  ,9t]e/ ,paya# 9 a ,=eign ,curr5cy
,numb]3 ,,it-#cfj;,r#b
,date3 ,decemb] #h1 #aihi
,ref];e3 ,subp>agraph #bab7#a77b77;iii7
  7al sec;n #ba1 subsec;ns #ah7#b71
  #bab7#a7 & 7#h71 #bad7#g7 & 7#ad7 &
  draft sec;n #gijj (! ,9come ,tax
  ,regul,ns7

               ,applic,n
    
  ,? bullet9 c.els & replaces
,,it-#cfj;,r issu$ ,augu/ #f1 #aigi4
,curr5t revi.ns >e 9dicat$ 0v]tical
l9es4



                                      #a
                ,summ>y              a#a
    
  ,"p ,,xiii (! ,act imposes a )hold+
tax on c]ta9 am.ts1 9clud+ 9t]e/1 t a
p]son resid5t 9 ,canada pays or cr$its
or is deem$ 0,"p ;,i (! ,act 6pay or
cr$it 6p]sons n resid5t 9 ,canada4 ,?
bullet9 d1ls ) exemp;ns f ,"p ,,xiii tax
9 respect ( 9t]e/ paya# 9 a =eign
curr5cy4 ,two ,9=m,n ,circul>s provide
a4i;nal 9=m,n on ,"p ,,xiii tax3 !
curr5t v].n ( ,i4,c4 #gg-af gives a
g5]al descrip;n tgr ) adm9i/rative -;ts
&! curr5t v].n ( ,i4,c4 #gf-ab gives
applica# tax rates4

          ,4cus.n & ,9t]pret,n
           7p>agraphs #a-aj7
    
#a4 ,! provi.n 9 subsec;n #bab7#a7
  requir+ a non-resid5t 6pay tax is n
  dep5d5t on ! 9come 2+ e>n$ 9 ,canada4
  ,if an am.t is pd or cr$it$ 6a non-
  resid5t p]son 0a resid5t ( ,canada on
  a3.t ( 9t]e/1 o!r ?an ! enum]at$    #b
             ,,it-#cfj;,r#b          b#a
  excep;ns 9 p>agraph #bab7#a77b71 x is
  subject 6tax4
#b4 ,subp>agraph #bab7#a77b77;iii71 "o
  (! excep;ns ref]r$ 6in #a abv1 exempts
  f tax 9t]e/ paya# 9 a curr5cy o!r ?an
  ,canadian curr5cy1 if x is paya#
  pursuant 6an >m's l5g? transac;n on an
  oblig,n enum]at$ 9 clauses
  #bab7#a77b77;iii77,a7 to 7,f74 ,?
  exemp;n does n apply to3
  7a7 9t]e/ on an oblig,n 5t]$ 96af
    ,novemb] #ab1 #aiha 7o!rwise ?an
    pursuant 6a -mit;t 9 writ+ made on
    or 2f t date7 & 2f ,febru>y #bf1
    #aihf 7or af ,febru>y #be1 #aihf if
    pursuant 6an agree;t 9 writ+ made on
    or 2f t date7 if all or any por;n (!
    9t]e/ is 3t+5t or dep5d5t ^u ! use (
    or produc;n f prop]ty 9 ,canada1 or
  7b7 9t]e/ paya# on an oblig,n1 o!r ?an
    a prescrib$ oblig,n1 issu$ or ext5d$
    af ,febru>y #be1 #aihf 7o!rwise ?an
    pursuant 6an agree;t
                                      #c
             ,,it-#cfj;,r#b           #b
    9 writ+ made on or 2f t date7 if all
    or any por;n (! 9t]e/ is 3t+5t or
    dep5d5t ^u ! use ( or produc;n f
    prop]ty 9 ,canada or is -put$
    0ref];e 6rev5ue1 pr(it1 ca% fl[1
    -mod;y price or any o!r simil>
    crit]ion or 0ref];e 6divid5ds pd or
    paya#4 ,al1 ": ! t]ms & 3di;ns
    relat+ 6! -put,n ( 9t]e/ paya# on an
    oblig,n >e *ang$ pursuant 6an
    agree;t made af ,febru>y #be1 #aihf1
    ! oblig,n % 2 deem$ 6h be5 issu$ af
    ,febru>y #be1 #aihf & n pursuant 6a
    writt5 agree;t made on or 2f t date4
    ,z yet no oblig,n has be5 prescrib$
    = purposes ( p>agraph #bab7#a77b74
#c4 ,9t]e/ paya# 9 ,canadian curr5cy is
  deem$ "u subp>agraph #bab7#a77b77;iii7
  69clude 9t]e/ express$ 6be -put$
  0ref];e 6,canadian curr5cy4 ,if 9t]e/
  is express$ 6be -put$ 0ref];e
  6,canadian curr5cy &! non-resid5t has
  ! op;n ( tak+ a pay;t : is -put$
  03v]t+ ! 9t]e/ calculat$ 9          #d
             ,,it-#cfj;,r#b          a#b
  ,canadian curr5cy 96a =eign curr5cy
  bas$ on a fix$ rate or curr5t rate (
  ex*ange1 ! 9t]e/ is 3sid]$ 6be -put$
  0ref];e 6,canadian curr5cy reg>d.s (
  :at op;n is *os54 ,on ! o!r h&1 if
  9t]e/ is express$ z 2+ paya# 9
  ,canadian curr5cy or 9 a =eign
  curr5cy1 at ! op;n (! cr$itor1 ! 9t]e/
  is 3sid]$ paya# 9 t =eign curr5cy if !
  non-resid5t *ooses t op;n4

  ,! =ego+ -;ts relate 6pay;ts ( 9t]e/
  actu,y made 9 m"oy1 & al 6! value (
  pay;ts made 9 k9d 7e4g41 9 corporate
  %>es or 9 gds7 : >e 9 lieu ( or 9
  satisfac;n ( 9t]e/ paya# 9 m"oy4 ,9 !
  ev5t t ! 3tract provid+ =! pay;t (
  9t]e/ /ipulates t 9 c]ta9 circum/.es !
  non-resid5t cr$itor is 5titl$ 6pay;t
  only 9 k9d1 !n ": ^? circum/.es exi/ &
  s* pay;t 9 k9d is made1 x _c 2 reg>d$
  z a pay;t 9 a non-,canadian curr5cy &1
  "!=e1 x _c 2 exempt f tax 0r1son (
  subp>agraph #bab7#a77b77;iii74      #e
             ,,it-#cfj;,r#b          b#b
#d4 ,": a pay;t may 2 reg>d$ z a -b9$
  pay;t ( 9come & capital1 ! 9come por;n
  may 3/itute 9t]e/ paya# 9 a =eign
  curr5cy4 ,": a non-resid5t p]son has
  gu>ante$ ! repay;t ( any am.t or am.ts
  [+ 0a resid5t ( ,canada1 ! am.ts pd or
  cr$it$ 6! non-resid5t p]son z 3sid],n
  =! gu>antee % 2 3sid]$ 6be ! pay;t (
  9t]e/4 ,am.ts pd 6a non-resid5t p]son
  "u an agree;t z 3sid],n =! non-resid5t
  p]son's agree;t 6l5d m"oy % al 2
  3sid]$ z 9t]e/ if t p]son wd h be5
  lia# 6,"p ,,xiii tax on 9t]e/ paya# "u
  ! agree;t4 ,all ! abv am.ts1 & any
  simil> transac;ns : result 9 9t]e/ 2+
  deem$ 6be pd or rcvd1 w 2 3sid]$ 9t]e/
  =! purpose ( p>agraph #bab7#a77b74
--------------------------------------#c
#e4 ,clause #bab7#a77b77;iii77,d7 0
  am5d$ ) respect 69t]e/ pd or cr$it$ af
  ,decemb] #ai1 #aihf 6exempt 9t]e/
  paya# on an am.t deposit$ at >m's l5g?
  )a prescrib$ f9ancial 9/itu;n if !
  9t]e/ &! am.t on deposit >e paya#   #f
             ,,it-#cfj;,r#b          a#c
  or repaya#1 z ! case may be1 only 9 a
  =eign curr5cy4 ,prior 6xs am5d;t1 !
  provi.n only ref]r$ 6s* 9t]e/ pd or
  cr$it$ 0a bank 6: ! ,bank ,act appli$4
  ,! previ\s provi.n 3t9ues 6apply )
  respect 6deposits made 2f #aihh4 ,a
  prescrib$ f9ancial 9/itu;n is def9$ 9
  draft ,regul,n #gijj & m1ns
  7a7 a corpor,n t is a memb] (!
    ,canadian ,pay;ts ,associ,n1 or
  7b7 a cr$it union t is a %>ehold] or
    memb] (a body corporate or organiz,n
    t is a c5tral = purposes (!
    ,canadian ,pay;ts ,associ,n ,act4
  ,am.ts deposit$ ) f9ancial 9/itu;ns w
  g5],y 2 unsecur$ debts : wd 2 report$
  6! applica# gov]n;t au?or;y 7f$]al or
  prov9cial7 z a deposit & : rank on a
  p> )1 r ?an 2+ subord9ate to1 all o!r
  unsecur$ deposits4 ,^! debts wd 9clude
  deposits 7z t ^w is g5],y "u/ood
  0p]sons do+ busi;s ) banks1 tru/
  -panies1 cr$it unions1 etc471 be>]
  deposit notes1 c]tificates (        #g
             ,,it-#cfj;,r#b          b#c
  deposit1 gu>ante$ 9ve/;t c]tificates1
  sav+s c]tificates & t]m deposit a3.ts4
  ,s* debts w n 2 3sid]$ 69clude
  deb5tures or bank]'s a3ept.es4
#f4 ,a ,canadian doll> swap deposit
  3si/s ( ?ree /eps3
  7a7 ! 3v].n ( ,canadian doll>s 96a
    =eign curr5cy1
  7b7 ! plac+ (! =eign curr5cy 9 a t]m
    deposit )a f9ancial 9/itu;n1
  7c7 ! pur*ase (a 8=w>d ex*ange0 3tract
    at ! "t ( 5t]+ 96! t]m deposit ": x
    is agre$ 0! depositor 63v]t pr9cipal
    & 9t]e/ on ! deposit back 6,canadian
    doll>s at matur;y4
  ,x is ! ,de"p;t's view t ! 9t]e/ pd on
  s* a swap deposit w qualify =! exemp;n
  "u clause #bab7#a77b77;iii77,d7
  provid$ ! t]m deposit is a sep>ate
  3tract f ! =w>d ex*ange 3tract4 ,if1
  h["e1 "! is evid;e 6%[ t ! non-
  resid5t's =w>d ex*ange 3tract )! bank
  =ms "p (! t]m deposit 3tract1 or1 t !
  =w>d ex*ange 3tract &! t]m          #h
             ,,it-#cfj;,r#b          c#c
  deposit >e "o 3tract1 clause
  #bab7#a77b77;iii77,d7 wd n apply &
  9t]e/ pay;ts "!on wd 2 subject 6non-
  resid5t tax4
--------------------------------------#d
#g4 ,clause #bab7#a77b77;iii77,e7
  exempts 9t]e/ paya# 9 a =eign curr5cy
  6a p]son ) :om ! pay] is d1l+ at >m's
  l5g? f ! tax+ provi.ns ( p>agraph
  #bab7#a77b7 if
  7a7 ! oblig,n ^u : ! 9t]e/ is pd is
    5t]$ 96in ! c\rse ( c>ry+ on a
    busi;s 9 a c.try o!r ?an ,canada1 &
  7b7 ! 9t]e/ paya# on ! oblig,n is
    deducti# 9 -put+ ! 9come (! pay] "u
    ,"p ;,i (! ,act f a busi;s c>ri$ on
    0hm 9 any s* c.try1 or t1 b =
    subsec;n #ah7#b7 or sec;n #ba1 wd h
    be5 s deducti#4
  ,:e!r any taxpay]1 9clud+ a corpor,n1
  is c>ry+ on a busi;s & :e!r any s*
  busi;s is 2+ c>ri$ on 9 ,canada or 9
  ano!r c.try >e "qs ( fact t m/ 2
  det]m9$ 9 ea* case4                 #i
             ,,it-#cfj;,r#b          a#d
#h4 ,": a non-resid5t p]son has pres5t$
  a bank]'s a3ept.e = redemp;n 6a p]son
  resid5t 9 ,canada1 ! am.t 74c.t7 0: !
  price = : ! oblig,n is redeem$ exce$s
  ! price = : ! oblig,n 0 issu$ is deem$
  0r1son ( subsec;ns #bad7#g7 &
  #bad7#ad7 6be 9t]e/ subject 6tax "u
  p>agraph #bab7#a77b74 ,9 "s cases1
  clause #bab7#a77b77;iii77,e7 may apply
  6exempt ! 4c.t f tax1 b only if !
  deem$ 9t]e/ &! oblig,n meet !
  require;ts 9 #g abv4 ,9 ? reg>d ! m]e
  issu+ (a bank]'s a3ept.e 0a ,canadian
  draw] 9 a c.try o!r ?an ,canada or !
  fact t a draw] has an ag5t or (fice 9
  ano!r c.try t c>ries \ only pur*as+
  activities =! draw] is n 3sid]$
  su6ici5t 63/itute c>ry+ on busi;s 9 t
  o!r c.try4
#i4 ,=! purpose ( clause
  #bab7#a77b77;iii77,a7 an oblig,n 5t]$
  96on or 2f ,decemb] #bj1 #aifj1
  9cludes renewals ( s* oblig,ns : 7
  3templat$ at ! "t4 ,= example1 a   #aj
             ,,it-#cfj;,r#b          b#d
  mortgage 5t]$ 96in #aiei : 2comes due
  9 five-ye> 9t]vals 3t9ues 6be s* an
  oblig,n if renew$ at ! 5d ( ea* five
  ye> p]iod4 ,x c1ses 6be s* an oblig,n
  if a fur!r sum ( m"oy is adv.ed at !
  "t ( "o (! renewals 0! mortgagee4
  ,subsec;n #bab7#h7 provides t if a
  bond is issu$ af ,decemb] #bj1 #aifj1
  9 ex*ange = ano!r bond issu$ prior 6t
  date1 ! new bond 7issu$ af ,decemb]
  #bj1 #aifj7 % 2 deem$ 6h be5 issu$
  prior 6,decemb] #bj1 #aifj1 if !
  hold]s (! orig9al bond _h ! "r 6make !
  ex*ange4
#aj4 ,? bullet9 is limit$ 6! 4cus.n (
  c]ta9 am.ts ( 9t]e/ paya# 6non-
  resid5ts 9 =eign curr5cies t >e exempt
  f tax pursuant 6subp>agraph
  #bab7#a77b77;iii74 ,x %d 2 not$ t
  exemp;ns li/$ 9 subp>agraphs
  #bab7#a77b77;i7 to 7;ix7 cd ov]lap 9
  "s circum/.es &a transac;n t does n
  fall )9 ! exemp;ns 4cuss$ cd fall )9
  ano!r (! li/$ exemp;ns4            #aa