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.
Issue
Article 2, paragraph 3(b)(3) the words "la redevance ... sur les resultats ..." do they committ Canada to treat, for foreign tax credit purposes, a royalty as an income tax?
Position
The above mentioned words could be interpreted to include royalty payments in respect of prospecting, research, development and pipeline transportation activities. However, the Department of Finance is aware of the problem and has discussed it with the Algerian delegation to the current round of treaty negotiations. Both Canada and Algeria agree that there is no intention that the Canada/Algeria Income Tax Convention should apply to anything other than income or profits taxes.
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© Her Majesty the Queen in Right of Canada, 1991
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© Sa Majesté la Reine du Chef du Canada, 1991
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