93 C.M.TC - Q. 11

Where a non-resident of Canada enters into a series of transactions designed primarily to secure an exemption or reduction from Canadian tax under an income tax convention, RC may seek to apply the general anti-avoidance rule to deny any tax benefit that such transactions would otherwise produce.

If a resident of a non-treaty country owning computer software rights licences them to residents of Canada "via" a Dutch corporation to take advantage of the exemption in the new protocol, the exemption in the new protocol will not apply if the interposed Dutch corporation is not the beneficial owner of the royalty payments. The beneficial owner is not necessarily the legal owner.