As provided in paragraph 3, of Article 10 (Dividends) of the Canada-New Zealand Income Tax Convention, Competent Authorities of Canada and New Zealand have established the following Mode of Application:

1. Paragraph 3 of Article 10 of the Convention will apply to exempt dividends from source taxation where the dividends are paid to the other Contracting State or a political subdivision or local authority thereof or to any wholly-owned agency or instrumentality of that State, political subdivision or local authority that performs functions of a governmental nature, which has been approved by the competent authorities in accordance with Article 10 of the Convention, provided that the recipient together with any related entities own less than 10 per cent of the voting power or value of the payer of the dividend.

2. For the purposes of this Mode of Application, paragraph 3 of Article 10 will apply:

• in the case of New Zealand to:
  1. the New Zealand Superannuation Fund and its wholly-owned subsidiaries;
  2. the Guardians of New Zealand Superannuation and its wholly-owned subsidiaries;
  3. the Earthquake Commission and its wholly-owned subsidiaries;
  4. the Reserve Bank of New Zealand; and
• in the case of Canada to:
  1. the Canada Pension Plan;
  2. the Canada Pension Plan Investment Board and its wholly-owned subsidiaries;
  3. the Quebec Pension Plan;
  4. the Caisse de dépôt and its subsidiaries, where the dividends received are wholly for the benefit of the Quebec Pension Plan; and
  5. the Bank of Canada.

3. It is understood that this Mode of Application will apply to dividends paid on or after August 1, 2015.