Foreign Tax witheld on Cdn stock in an IRA

[moi]

I recently moved my IRA, from one firm to another. I am unble to get a satisfactory answer as to why; I have a foreign tax payment on my Canadian stock's dividend, Approx. 1/3 of the dividend value. I was under the assumption that Canada doesn't tax dividends on Canadian stocks held in IRAs. I'm a Canadian with an IRA, if that makes a difference. If you cannot answer this, who can? Thank you.

[nelsona]

Were you being withheld at your old firm?

Indeed, CDn stocks held in an IRA should not be subject to CDn withholding by Article XXI(2), since IRAs are by definition exempt retirement accounts.

It would seem that this firm has not informed CRA that the account is an IRA.

[moi]

Thanks for the reply.
No, I never saw anything being held back before.
I called, but couldn't get a straight answer from them. They said this was their understanding of the treaty.
UGH!
He couldn't even tell me if I would be able to claim a foreign tax credit.

[moi]

Thanks for the reply.
No, I never saw anything being held back before.
I called, but couldn't get a straight answer from them. They said this was their understanding of the treaty.
UGH!
He couldn't even tell me if I would be able to claim a foreign tax credit.

[BeaconHillWealth]

Yes, sounds like you should find someone that specializes in cross-border investments as they got this quite wrong.

Phil

nelsona wrote:
> Were you being withheld at your old firm?
>
> Indeed, CDn stocks held in an IRA should not be subject to CDn withholding
> by Article XXI(2), since IRAs are by definition exempt retirement accounts.
>
>
> It would seem that this firm has not informed CRA that the account is an
> IRA.