2019-0820961E5 Prescribed International Organization

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA. Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.

Principal Issues: Is the World Food Programme (WFP) a prescribed international organization in accordance with subsection 8900(1) of the Regulations, for purposes of subparagraph 110(1)(f)(iii)?

Position: Yes.

Reasons: The WFP, being a subsidiary organ of the General Assembly, is an integral part of the United Nations. Therefore, pursuant to paragraph 8900(1)(a) of the Regulations, it is a prescribed international organization for the purposes of subparagraph 110(1)(f)(iii) of the Act.

Author: Patel, Komal
Section: Regulation 8900(1)(a), 110(1)(f)(iii)

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                                                                                          Komal Patel

February 24, 2022

Dear Sir:

Re: Amounts received from the World Food Programme (“WFP”)

This is in reply to your emails of August 22, 2019 and August 24, 2019 in which you requested a technical interpretation regarding the Canadian taxation of employment income to be received from the WFP. In particular you asked whether the WFP would be considered to be a prescribed international organization as noted in subsection 8900(1) of the Income Tax Regulations (“the Regulations”), for purposes of subparagraph 110(1)(f)(iii) of the Income Tax Act (“the Act”).

Our comments

This technical interpretation provides general comments about the provisions of the Act and related legislation (where referenced). It does not confirm the income tax treatment of a particular situation involving a specific taxpayer but is intended to assist you in making that determination. The income tax treatment of particular transactions proposed by a specific taxpayer will only be confirmed by this Directorate in the context of an advance income tax ruling request submitted in the manner set out in Information Circular IC 70-6R9, Advance Income Tax Rulings and Technical Interpretations.

In computing a taxpayer’s taxable income for a year, subparagraph 110(1)(f)(iii) of the Act allows a deduction for any amount that is income from employment with a prescribed international organization to the extent that the employment income is included in the taxpayer’s income for the year. A prescribed international organization for purposes of subparagraph 110(1)(f)(iii) is described in subsection 8900(1) of the Regulations to be the United Nations (the “UN”) and each international organization that is a specialized agency brought into relationship with the UN in accordance with Article 63 of the Charter of the UN.

Based on information provided by the UN on its website, the WFP is not listed as a specialized agency of the UN. Therefore, the WFP would not be a prescribed international organization pursuant to paragraph 8900(1)(b) of the Regulations.

However, in assessing whether the WFP would be a prescribed international organization pursuant to paragraph 8900(1)(a) of the Regulations, it is useful to consider the following excerpts from the UN Charter regarding the principal and subsidiary organs of the UN:

Article 7

1. There are established as principal organs of the United Nations: a General Assembly, a Security Council, an Economic and Social Council, a Trusteeship Council, an International Court of Justice and a Secretariat.

2. Such subsidiary organs as may be found necessary may be established in accordance with the present Charter.

Article 22

The General Assembly may establish such subsidiary organs as it deems necessary for the performance of its functions.

The WFP is governed by an Executive Board, and this Executive Board is a subsidiary organ of the UN that operates under the leadership of the General Assembly, a principal organ of the UN. As such, with the WFP being a subsidiary organ of the UN General Assembly, it is an integral part of the UN. Therefore, pursuant to paragraph 8900(1)(a) of the Regulations, the WFP would be a prescribed international organization for the purposes of subparagraph 110(1)(f)(iii) of the Act.

We trust the above comments will be of assistance.

Yours truly,

Yves Moreno
Acting Director
International Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch

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