Search - contravention

Creditability where domestic Treaty override (p.9) Where the source state's domestic law expressly provides for taxation in contravention of a treaty, the treaty crediting mechanism would likely not apply (assuming the relevant treaty rule follows the OECD Model, which provides for a credit in respect of tax imposed "in accordance with the treaty"). ... The CRA appears to have accepted this premise in the context of U.S. alternative minimum tax imposed in contravention of the U.S. ... Arguably, this analysis could also be applied where foreign tax is imposed in contravention of a treaty under a domestic anti-treaty shopping rule. ...

. …] Creditability where domestic Treaty override (p.9) Where the source state's domestic law expressly provides for taxation in contravention of a treaty, the treaty crediting mechanism would likely not apply (assuming the relevant treaty rule follows the OECD Model, which provides for a credit in respect of tax imposed "in accordance with the treaty"). ... The CRA appears to have accepted this premise in the context of U.S. alternative minimum tax imposed in contravention of the U.S. ... Arguably, this analysis could also be applied where foreign tax is imposed in contravention of a treaty under a domestic anti-treaty shopping rule. ...

Wertschek, "The Tax Advisor and Commercial Law: Some Issues", 1993 Conference Report, C. 24-- summary under Dividend Summary Under Tax Topics- Income Tax Act- Section 248- Subsection 248(1)- Dividend Discussion (at pp. 9-12) of whether amounts paid as dividends in contravention of the governing corporate law will retain their character as dividends. ...