Ottawa, May 28, 1997
1997-047

Entry Into Force of the Tax Agreement Between Canada and the Republic of India

Finance Minister Paul Martin today announced that the Government of Canada notified the Government of the Republic of India on May 6, 1997, that the necessary procedures in Canada for the bringing into force of the Agreement between Canada and the Republic of India for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital signed at Delhi on January 11, 1996, have been completed. The Government of the Republic of India has already notified the Government of Canada on February 2, 1996, that it had completed its own procedures. Article 29 of the Agreement provides that it shall enter into force on the date of the later of these notifications.

The Agreement therefore entered into force on May 6, 1997 and its provisions will have effect:

(a) in respect of tax withheld at the source on amounts paid or credited to non-residents on or after the first day of January 1998; and

(b) in respect of other taxes for taxation years beginning on or after the first day of January 1998.

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For further information:

Jean-Marc Déry
Tax Legislation Division
(613) 992-1862