,CANADA ,CU/OMS                       #A
& ,REV5UE ,AG5CY

              ,9COME ,TAX
          ,9T]PRET,N ,BULLET9
    
,SUBJECT3 ,,9COME ,,TAX ,,ACT
  ,NON-,RESID5T ,B5EFICI>IES ( ,TRU/S
,NUMB]3 ,,IT-#DFE;,R
,DATE3 ,SEPTEMB] #AI1 #AIHE
,REF];E3 ,P>AGRAPH #BAB7#A77C7 7AL
  SUBSEC;NS #BJ7#AF71 #HC7#A71 #AJD7#D71
  7#E71 7#E.A71 7#F71 7#H71 7#AB71
  7#AC71 & 7#BA71 #AJE7#B71 #AJG7#D71
  #ADI7#A71 #BAB7#B71 7#I71 7#AJ71
  7#AA71 7#AA.A7 & 7#AA.B71 #BAD7#A7 &
  #BAE7#A71 & P>AGRAPHS #BJ7#A77A71
  #AJH7#A77D4#A71 #AAE7#A77B71
  #ACC7#H77D71 & #BAD7#C77F774

  ,? BULLET9 REPLACES & C.ELS ,,IT-#DFE
DAT$ ,DECEMB] #BF1 #AIHJ4 ,CURR5T
REVI.NS >E DESIGNAT$ 0V]TICAL L9ES4
,PROPOSALS 3TA9$ 9 ! ,NOTICES ( ,WAYS &
                                      #A
              ,,IT-#DFE;,R           A#A
,M1NS ,MO;NS ( ,MAY #I & ,MAY #BC1 #AIHE
>E N 3SID]$ 9 ? REL1SE4

     ,UN.S O!RWISE /AT$1 A TRU/ 9 ?
     ,BULLET9 M1NS A TRU/ RESID5T 9
                ,CANADA
    
#A4 ,? BULLET9 4CUSSES ! TAX TR1T;T (
  V>I\S K9DS ( PAY;TS F A TRU/ RESID5T 9
  ,CANADA 6A NON-RESID5T B5EFICI>Y & %D
  2 R1D 9 3JUNC;N ) ,,IT-#CHA;,R4
#B4 ,P>AGRAPH #BAB7#A77C7 PROVIDES T E
  NON-RESID5T P]SON % PAY ,"P ,,XIII TAX
  AT ! APPLICA# RATE ON E AM.T T A P]SON
  RESID5T 9 ,CANADA PAYS OR CR$ITS1 OR
  IS DEEM$ 0,"P ;,I 6PAY OR CR$IT1 6!
  NON-RESID5T Z OR ON A3.T ( 9COME ( OR
  F AN E/ATE OR TRU/4 ,"P ,,XIII TAX M/
  2 )HELD 0! PAY] & REMITT$ 6! ,RCVR
  ,G5]AL ON 2HALF (! NON-RESID5T 9
  A3ORD.E ) SUBSEC;N #BAE7#A74
#C4 ,AN EXCEP;N 9 ! PROVI.NS ( P>AGRAPH
  #BAB7#A77C7 IS MADE ": S* 9COME IS A
  TAXA# CAPITAL GA9 (A MUTUAL FUND    #B
              ,,IT-#DFE;,R           B#A
  TRU/ T IS PD OR CR$IT$ 6A NON-RESID5T
  B5EFICI>Y ( T TRU/ & IS DESIGNAT$ 0!
  TRU/ "U SUBSEC;N #AJD7#BA7 9 RESPECT (
  T B5EFICI>Y4 ,=A 4CUS.N (! G5]AL RULES
  3C]N+ CAPITAL GA9S & TRU/S1 SEE
  ,,IT-#CHA;,R4
#D4 ,PURSUANT 6SUBSEC;N #BAD7#A71 ! TAX
  PAYA# "U P>AGRAPH #BAB7#A77C7 IS PAYA#
  ON ! GROSS AM.TS DESCRIB$ "!9 )\T ANY
  DEDUC;N F ^? AM.TS :AT"E4
#E4 ,PURSUANT 6P>AGRAPH #BAD7#C77F71 ":
  ANY "P (! 9COME (A TRU/ IS 8PAYA#0
  7SEE ,,IT-#BHF;,R & ,,IT-#CDB;,R7 6A
  NON-RESID5T B5EFICI>Y 9 A TRU/'S TAX,N
  YE>1 ! AM.T T WD1 IF ,"P ;,I 7
  APPLICA#1 2 REQUIR$ 0SUBSEC;N
  #AJD7#AC7 6BE 9CLUD$ 9
--------------------------------------#B
  ! NON-RESID5T B5EFICI>Y'S 9COME IS
  SUBJECT 6,"P ,,XIII TAX ON ! E>LI] (
  7A7 ! "D ! AM.T 0 PD OR CR$IT$1 &
  7B7 ! "D T IS #IJ "DS AF ! 5D (!
    TRU/'S TAX,N YE>4
                                      #C
              ,,IT-#DFE;,R           A#B
  ,": AN AM.T HAS BE5 TAX$ 0VIRTUE ( ?
  RULE1 NO FUR!R TAX IS EXIGI#2 E4G4 ":
  ! AM.T IS SUBSEQU5TLY PD4
#F4 ,SUBJECT 6! EXEMP;NS 9 SUBSEC;NS
  #BAB7#I71 7#AJ717#AA.A7 & 7#AA.B7
  4CUSS$ 9 #I 6#AE 2L1 SUBSEC;N
  #BAB7#AA7 PROVIDES T ANY AM.T PD OR
  CR$IT$ 0A TRU/ 6A B5EFICI>Y 7O!RWISE
  ?AN ON A 4TRIBU;N OR PAY;T ( CAPITAL7
  % 2 DEEM$ =! PURPOSE ( P>AGRAPH
  #BAB7#A77C7 6H BE5 PD Z 9COME (! TRU/
  REG>D.S (! S\RCE F : ! TRU/ DERIV$ X4
  ,EV5 IF ! AM.T S PD OR CR$IT$ 0 RCVD
  0! TRU/ 9 A =M :1 IF X _H BE5 PD
  DIRECTLY 6! NON-RESID5T B5EFICI>Y1 WD
  H BE5 EXEMPT F ,"P ,,XIII TAX1
  SUBSEC;N #BAB7#AA7 APPLIES 6R5D] T
  AM.T SUBJECT 6TAX "U P>AGRAPH
  #BAB7#A77C7 :5 X IS PD OR CR$IT$ 6!
  NON-RESID5T 0! TRU/4
#G4 ,X IS ! ,DE"P;T'S VIEW T SUBSEC;N
  #HC7#A7 DIVID5DS RCVD 9 A TAX,N YE> 0A
  TRU/ & PD OR PAYA# 6A NON-RESID5T
  B5EFICI>Y 9 ! SAME TAX,N YE> >E     #D
              ,,IT-#DFE;,R           B#B
  SUBJECT 6TAX "U P>AGRAPH #BAB7#A77C7
  0VIRTUE ( SUBSEC;N #BAB7#AA71 EV5 ?\<
  S* DIVID5DS WD N 2 SUBJECT 6TAX "U
  SUBSEC;N #BAB7#B7 IF PD DIRECTLY 6!
  NON-RESID5T B5EFICI>Y4
#H4 ,SIMIL>LY1 9T]E/ T WD ORD9>ILY 2
  EXEMPT F ,"P ,,XIII TAX "U P>AGRAPH
  #BAB7#A77B7 IS SUBJECT 6TAX "U
  P>AGRAPH #BAB7#A77C7 :5 RCVD 0A TRU/ &
  4TRIBUT$ 6A NON-RESID5T B5EFICI>Y4

               ,EXEMP;NS
    
#I4 ,P>AGRAPH #BAB7#I77A7 PROVIDES AN
  EXEMP;N F TAX "U P>AGRAPH #BAB7#A77C7
  9 ! CASE ( AN AM.T PD OR CR$IT$ 6A
  NON-RESID5T B5EFICI>Y Z 9COME ( OR F A
  TRU/ IF X MAY R1SONABLY 2 REG>D$ Z
  HAV+ BE5 DERIV$ F DIVID5DS OR 9T]E/
  RCVD 0! TRU/EE F A NON-RESID5T-[N$
  9VE/;T CORPOR,N 7Z DEF9$ 9 P>AGRAPH
  #ACC7#H77D77 PROVID$ ! DIVID5DS &
  9T]E/ WD H BE5 EXEMPT F ,"P ,,XIII TAX
  IF PD 0! NON-RESID5T-[N$ 9VE/;T     #E
              ,,IT-#DFE;,R           C#B
  CORPOR,N DIRECTLY 6! NON-RESID5T
  P]SON4
#AJ4 ,P>AGRAPH #BAB7#I77B7 PROVIDES AN
  EXEMP;N F TAX "U P>AGRAPH #BAB7#A77C7
  9 ! CASE ( AN AM.T PD OR CR$IT$ 6A
  NON-RESID5T B5EFICI>Y Z 9COME ( OR F A
  TRU/ IF X MAY R1SONABLY 2 REG>D$ Z
  HAV+ BE5 DERIV$ F A COPY"R ROYALTY 9
  RESPECT (! PRODUC;N OR REPRODUC;N (A
  LIT]>Y1 DRAMATIC1 MUSICAL
--------------------------------------#C
  OR >TI/IC "W1 : WD H BE5 EXEMPT F ,"P
  ,,XIII TAX IF PD DIRECTLY 6! NON-
  RESID5T P]SON4
#AA4 ,SUBSEC;N #BAB7#AJ7 EXEMPTS F TAX
  "U P>AGRAPH #BAB7#A77C7 AM.TS PD OR
  CR$IT$ 6A NON-RESID5T B5EFICI>Y Z
  9COME ( OR F A TRU/1 ": ! FOLL[+
  3DI;NS >E SATISFI$3
  7A7 ! TRU/ 0 E/ABLI%$ 2F ,JANU>Y #A1
    #AIDI
  7B7 ALL ! B5EFICI>IES (! TRU/ 7
    RESID5T DUR+ ! TAX,N YE> 9 "O C.TRY
    O!R ?AN ,CANADA1 &                #F
              ,,IT-#DFE;,R           A#C
  7C7 ALL AM.TS 9CLUD$ 9 -PUT+ ! 9COME
    (! TRU/ =! TAX,N YE> 7 RCVD F P]SONS
    RESID5T 9 T C.TRY4
#AB4 ,SUBSEC;N #AJD7#H7 RE/RICTS ! AM.T
  T A TRU/ 7O!R ?AN A MUTUAL FUND TRU/7
  MAY1 0VIRTUE ( SUBSEC;N #AJD7#F71
  DEDUCT 9 -PUT+ XS 9COME4 ,? RE/RIC;N
  APPLIES ": ANY 8DESIGNAT$ 9COME0 7SEE
  #AC 2L7 (A TRU/ IS PAYA# 6A 8DESIGNAT$
  B5EFICI>Y0 7SEE #AD 2L7 & CAUSES S* A
  B5EFICI>Y'S %>E ( S* 9COME 6BE TAX$ 9
  ! H&S (! TRU/ "U ,"P ;,I (! ,ACT4 7,!
  OP],N ( SUBSEC;N #AJD7#H7 IS ILLU/RAT$
  9 ,,IT-#CHA;,R74
#AC4 8,DESIGNAT$ 9COME0 (A TRU/ =A TAX,N
  YE> IS DESCRIB$ 9 P>AGRAPH
  #AJH7#A77D4#A7 Z ! A7REGATE ( XS
  9COMES =! YE> F
  7A7 R1L PROP]TY 9 ,CANADA1
  7B7 TIMB] RES\RCE PROP]TIES1
  7C7 ,CANADIAN RES\RCE PROP]TIES1
  7D7 BUSI;SES C>RI$ ON 9 ,CANADA1 &
  7E7 TAXA# CAPITAL GA9S1 LESS ALL[A#
    CAPITAL LOSSES >IS+ ON !          #G
              ,,IT-#DFE;,R           B#C
    4POSI;N ( TAXA# ,CANADIAN PROP]TY Z
    DEF9$ 9 P>AGRAPH #AAE7#A77B7
  2F MAK+ ANY DEDUC;N "!FROM 9 RESPECT (

  7F7 T]M9AL LOSSES 7SUBSEC;N #BJ7#AF771
  7G7 AM.TS PAYA# 6A B5EFICI>Y (! TRU/
    7SUBSEC;N #AJD7#F771
  7H7 AM.TS 9CLUD$ 9 ! 9COME (A PREF]R$
    B5EFICI>Y 7SUBSEC;N #AJD7#AB771
  7I7 AM.TS PD = UPKEEP1 MA9T5.E OR
    TAXES ) RESPECT 6PROP]TY 7SUBSEC;N
    #AJE7#B771 &
  7J7 CAPITAL CO/ ALL[.E 7P>AGRAPH
    #BJ7#A77A77
  B AF MAK+ DEDUC;NS "!FROM 9 RESPECT (
  LOSSES1 IF ANY1 =! TAX,N YE> F

  7K7 R1L PROP]TY 9 ,CANADA1
  7L7 TIMB] RES\RCE PROP]TIES1 &
  7M7 BUSI;SES C>RI$ ON 9 ,CANADA1
  
  EXCEPT T =! PURPOSE ( SUBP>AGRAPH
  #AJD7#H77F77;I71 DESIGNAT$ 9COME DOES
  N 9CLUDE                            #H
              ,,IT-#DFE;,R           C#C
  7N7 ": ! TRU/ IS A TRU/ DESCRIB$ 9
    P>AGRAPH #AJD7#D77A7 7I4E4 A SP\SE
    TRU/7 ANY DESIGNAT$ 9COME >IS+ F
    DEEM$ 4POSI;NS AF ,NOVEMB] #AB1
    #AIHA "U SUBSEC;N #AJD7#D71 #AJD7#E7
    OR #AJG7#D7 OR F DEEM$ 4POSI;NS AF
    ,SEPTEMB] #CJ1 #AIHC
--------------------------------------#D
    "U SUBSEC;N #AJD7#E.A71 &
  7O7 ": ! TRU/ IS A TE/A;T>Y TRU/1 ANY
    DESIGNAT$ 9COME T >OSE F 4POSI;NS T
    O3URR$ 2F ,NOVEMB] #AC1 #AIHA4
#AD4 ,A 8DESIGNAT$ B5EFICI>Y01 Z REF]R$
  6IN #AB ABV1 IS DESCRIB$ 9 SUBSEC;N
  #AJD7#H7 Z A B5EFICI>Y (A TRU/ 6:OM IS
  PAYA# AN AM.T 9 RESPECT (! 9COME =!
  TAX,N YE> (! TRU/ IF1 AT ! "T ! AM.T
  2CAME S PAYA#1 ! B5EFICI>Y 0
  7A7 A NON-RESID5T P]SON1
  7B7 A NON-RESID5T-[N$ 9VE/;T CORPOR,N1
    OR
  7C7 A TRU/ RESID5T 9 ,CANADA1 O!R ?AN
  
                                      #I
              ,,IT-#DFE;,R           A#D
    7;I7 A TRU/ T IS EXEMPT F TAX "U ,"P
      ;,I (! ,ACT 0VIRTUE ( SUBSEC;N
      #ADI7#A71 OR
    7;II7 A TRU/1 ALL ! B5EFICI>IES ( :1
      "?\T ! P]IOD 2G9N+ ON ,MAY #F1
      #AIGD & 5D+ AT T "T1 7 RESID5T 9
      ,CANADA4
#AE4 ,PURSUANT 6! PROVI.NS ( SUBSEC;NS
  #AJD7#F7 & 7#AC71 ! AM.T ( 9COME (A
  TRU/ =A TAX,N YE> T IS PAYA#1 )9 !
  M1N+ ( SUBSEC;NS #AJD7#AH7 & 7#BD71 6A
  B5EFICI>Y IS SUBJECT 6TAX Z 9COME 9 !
  B5EFICI>Y'S H&S & N 9 ! H&S (! TRU/4
  ,H["E1 ": ! TRU/ IS PRECLUD$ 7SEE #AB
  ABV7 F DEDUCT+ AN AM.T ( 9COME T IS
  PAYA# 6A B5EFICI>Y1 S* AM.T IS AL
  SUBJECT 6TAX 9 ! H&S (! TRU/4
  ,6ELIM9ATE ? D\# TAX,N1 SUBSEC;NS
  #BAB7#AA.A7 & 7#AA.B7 P]MIT ! TRU/
  6DESIGNATE ! AM.T T WD 2 9CLUD$ 9 !
  9COMES =! YE> ( BO? ! TRU/ &!
  B5EFICI>Y4 ,! AM.T ( TRU/ 9COME S
  DESIGNAT$ W 2 DEEM$ N 6H BE5 PAYA# 6!
  B5EFICI>Y 9 ! YE> & W "!=E N 2     #AJ
              ,,IT-#DFE;,R           B#D
  SUBJECT 6TAX "U P>AGRAPH #BAB7#A77C74
  ,9COME S DESIGNAT$ & 9CLUD$ 9 ! -PUT,N
  ( TRU/ 9COME W N 2 SUBJECT 6TAX 9 !
  H&S (! B5EFICI>Y :5 ! AM.T "!( REMA9+
  AF ANY TAX "!ON IS PD \ 6! B5EFICI>Y4
  ,! DESIGN,N ( AN AM.T Z PROVID$
  0SUBSEC;NS #BAB7#AA.A7 & 7#AA.B7 IS
  6BE MADE 0A TRU/ 9 XS RETURN ( 9COME
  =! YE> "U ,"P ;,I (! ,ACT4
#AF4 ,": A NON-RESID5T B5EFICI>Y IS A
  RESID5T (! ,UNIT$ ,/ATES1 ,>TICLE
  ,,XXII (! ,CANADA--,UNIT$ ,/ATES
  ,9COME ,TAX ,3V5;N 7#AIHJ7 EXEMPTS F
  ,"P ,,XIII TAX ANY POR;N (! TRU/'S
  9COME PD OR CR$IT$ 6! NON-RESID5T T C
  2 %[N 6BE \ ( 9COME RCVD F S\RCES
  \TSIDE ,CANADA4 ,": ! TRU/'S 9COME
  >OSE F S\RCES 9SIDE ,CANADA1 ,>TICLE
  ,,XXII LIMITS ! ,"P ,,XIII TAX 6#AE@3P
  (! GROSS AM.T PD OR CR$IT$ 6! ,UNIT$
  ,/ATES' RESID5T B5EFICI>Y4


                                     #AA
         ,TAXA# ,CAPITAL ,GA9S        #E
    
#AG4 ,TAXA# CAPITAL GA9S (A TRU/ T >E
  PAYA# 6A NON-RESID5T B5EFICI>Y >E
  SUBJECT 6,"P ,,XIII TAX UN.S !
  EXEMP;NS 9 P>AGRAPH #BAB7#A77C7 OR
  SUBSEC;NS #BAB7#AA.A7 & #BAB7#AA.B7
  APPLY 7SEE #C & #AB 6#AE ABV74 ,X HAS
  BE5 SU7E/$ T A PAY;T ( S* GA9S IS
  EXEMPT F ,"P ,,XIII TAX Z A 8PAY;T (
  CAPITAL0 )9 ! M1N+ ( SUBSEC;N
  #BAB7#AA7 74CUSS$ 9 #F ABV71 S9CE1 "U
  TRU/ LAW1 CAPITAL GA9S G5],Y =M "P (!
  CAPITAL (! TRU/4 ,! ,DE"P;T'S VIEW IS
  T A 4TRIBU;N ( TAXA# CAPITAL GA9S IS A
  4TRIBU;N ( TRU/ 9COME = TAX PURPOSES4
  ,ON ! O!R H&1 A PAY;T (! NON-TAXA#
  POR;N (! TRU/'S CAPITAL GA9S DOES
  QUALIFY = EXEMP;N "U SUBSEC;N
  #BAB7#AA74




                                     #AB