CRA finds that fees paid to the U.S. or U.K. for access to customer lists were exempt royalties

The applicable Treaty exempts, from withholding tax, a payment made by a resident of Canada to a U.S. or U.K. resident “for the use of or the right to use… information concerning industrial, commercial or scientific experience.” CRA considered that this exemption would apply to amounts styled as “fees” paid for the right to access lists of customers who had purchased particular types of products.

Neal Armstrong. Summary of 15 June 2015 T.I. 2014-0525501E5 under Treaties – Art. 12.