Do non-residents need to pay tax on Can Govt Bond?

Normally, on Govt Bonds one pays tax only on the interest payments received but not on the capital gains made on such bonds..

from the canadian finance dept:The following summary fairly describes the principal Canadian federal income tax consequences generally applicable to an owner of a beneficial interest in a Bond who for purposes of the Income Tax Act (Canada) (the "Act") is a non-resident of Canada and is not deemed to be a resident of Canada. This summary is based on the provisions of the Act and the Regulations thereunder in force on the date hereof. This summary does not address provincial, territorial or foreign income tax considerations and is not applicable to Canadian residents. No assurances can be given that changes in the law or administrative practices or future court decisions will not affect the tax treatment of the owner of a beneficial interest in a Bond.Under the Act, Canada is not required to withhold tax from interest or principal paid or credited by Canada on Bonds to a non-resident of Canada except where all or any portion of such interest is contingent or dependent upon the use of or production from property in Canada or is computed by reference to revenue, profit, cash flow, commodity price or any similar criterion or by reference to dividends payable on any class of shares of the capital stock of a corporation and the Bond is not a prescribed obligation for purposes of paragraph 212(1)(b) of the Act. The applicability of the foregoing exceptions to a particular issue of Bonds will be dealt with as necessary in the Prospectus Supplement relating to the issue of the Bonds. In addition, under such laws, no other tax on income or capital gains is payable in respect of Bonds or the interest thereon by owners of beneficial interests who are neither residents not deemed to be resident of Canada, and who do not use or hold, and are not deemed or considered to use or to hold, the Bonds in carrying on business in Canada (and in particular, in the case of insurers, do not carry on an insurance business in Canada with which such Bonds are effectively connected).