WTO Pension Plan Tax Remission

Summary#

The World Trade Organization Pension Plan Remission Order cancels and refunds certain Canadian income tax that was withheld or paid on investments linked to the World Trade Organization’s employee pension plan between January 1, 2000 and December 31, 2011. The amounts involved are Can$115,481.00 and the Canadian-dollar equivalent of US$11,942.00; interest and penalties tied to those amounts are also remitted. The order was made on February 2, 2024 and registered in the Gazette on February 14, 2024.

What it does#

• Remits (refunds) tax paid to Canada under the Income Tax Act for investment income of the WTO’s pension plan for the period January 1, 2000 to December 31, 2011.
• Remits any interest and penalties that were paid on those tax amounts.
• Limits the remission to amounts that have not already been rebated, remitted, credited, or refunded under the Financial Administration Act or any other federal law.
• Requires a written claim to be filed with the Minister of National Revenue within two years of the day the order was made. If the tax was paid by the WTO, the WTO must provide proof of payment.
• Says the refunds will be paid out of the Consolidated Revenue Fund and that the order comes into force on the day it was made.

Who's affected#

• World Trade Organization and its employee pension plan — they are the main parties to receive the refunds.
• The Canada Revenue Agency is the agency that originally received the withheld amounts and will be involved in processing claims and refunds.
• Global Affairs Canada and the Department of Finance were involved in the background work; the government says no other stakeholders are affected.
• Canadian companies that paid dividends to the pension plan and withheld the tax are indirectly part of the history, since they remitted those withheld amounts to government at the time.

Why it matters#

• It returns roughly Can$115,481.00 plus the Canadian equivalent of US$11,942.00 to the WTO, correcting tax collections that the government says should not have applied because of the WTO’s privileges and immunities.
• It implements Canada’s commitments under international agreements that give certain international organizations and their officials tax exemptions.
• If you work for or manage finances for an international organization, this is an example of how tax exemptions for international bodies can be applied retroactively and may require formal claims to recover withheld amounts.