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25 May 2004 External T.I. 2003-0051291E5 F- Formation et croisière-- summary under Subsection 20(10) Summary Under Tax Topics- Income Tax Act- Section 20- Subsection 20(10) costs of cruise, if not viewed as training, would be non-deductible as they were incurred outside Canada Are expenses incurred by members of an Association respecting conventions, symposia and seminars held during a cruise deductible from their income? CRA noted that IT-357R2, para. 9 indicates that training is aimed at learning a subject in accordance with a formal course of study, whereas a convention is a formal meeting of members of an organization for professional or business purposes. ... CRA then stated: Assuming that the expenses [instead] are incurred in connection with a convention held during a sea cruise, it is our view that no amount for expenses incurred to attend the convention would be deductible since the convention would be held outside the geographical boundaries of the association that is the sponsor of the convention, as discussed in paragraph 2 of IT-131R2. ...

Convention applies to TFSA and RDSP trusts Does 2013-0504641E5- indicating that a reduced (to 15%) rate of withholding on amounts distributed by RESPs constituted as trusts can apply pursuant to Art. XXII of the Canada-U.S. convention- also apply to RDSPs and TFSAs that are trusts? After noting that the Part XIII withholding rules could apply to distributions from a TFSA described in s. 12(1)(z.5), 146.2(9) or 207.061, CRA stated: Since payments from TFSAs and RDSPs to US residents are not dealt with in any other Article of the Convention, they qualify as "other income" for the purposes of Article XXII:1 of the Convention. … Consequently, the reduced rate of 15% provided for in Article XXII:2 of the Convention may be applied to amounts distributed from TFSAs and RDSPs to a U.S. resident where such TFSAs and RDSPs are constituted as trusts and are described in paragraph 212(1)(r.1) or 212(1)(p), as the case may be. ...

1 March 2010 Internal T.I. 2009-0346951I7 F- Article XVI-Établissement stable-Province-- summary under Article 16 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 16 Art. XVI of US Convention applicable irrespective of whether a PE A U.S.-incorporated resident of the U.S. for Treaty purposes (“Non-Resident Corporation”), whose shares were 50% owned by a non-resident artist whom it represented, presented various shows in Canadian provinces, and received a share of the revenues from the promoter. ... Before finding that Non-Resident Corporation did not have a permanent establishment in any province for purposes of Part IV of the Regulations, the Directorate stated: Article XVI of the Convention … applies without regard to, inter alia, Article VII of the Convention, and... permits Canada to tax income derived by a non-resident company from performances in Canada without requiring that such income be earned through a permanent establishment in Canada under the Convention. ...

4 June 2019 Internal T.I. 2018-0783441I7 F- Sale of land by a resident of Hong Kong-- summary under Article 13 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 13 Canadian land was not Treaty-exempt even where it did not generate income A non-resident individual (the "Non-resident") residing in Hong Kong for the purposes of the Canada-Hong Kong Convention disposed of land located in Canada to an arm's length third party. CRA stated: [T]he capital gain from the disposition of the Land by the Non-resident is taxable in Canada under Article 13, paragraph 1, of the Convention, whether or not that property has generated property income or business income. Indeed, we understand that the reference to Article 6, "Income from Immovable Property", in Article 13, paragraph 1, of the Convention does not have the effect of reducing the scope of that paragraph. ...

7 June 2017 CPTS Roundtable, 2017-0695131C6-- summary under Article 13 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 13 Q.3- Canada-U.K. ... After referring to the status of such shares as “taxable Canadian property”, and noting that under Art.13, para. 5(a), shares may be taxed in Canada if they derive the greater part of their value from immovable property situated in Canada, OR “any right referred to in paragraph 4 of Article 13 of the Convention, which describes certain rights related to petroleum, natural gas, or other related hydrocarbons situated in Canada,” CRA stated: Assuming that the shares of the Canadian subsidiary (which carries on an active oil and gas business) derive the greater part of their value from rights described in paragraph 4 of Article 13 of the Convention, then Canada retains its right to tax the gain on the alienation of those shares. It is not necessary to determine whether the shares derive their value from immovable property as defined in the Convention or the Income Tax Conventions Interpretation Act. ...

7 April 2006 External T.I. 2005-0132981E5 F- Avantages imposables à des employés-- summary under Subsection 20(10) Summary Under Tax Topics- Income Tax Act- Section 20- Subsection 20(10) meaning of convention Does a convention for s. 20(10) purposes include a symposium, conference, information session or formal meeting? CRA responded: [A]s stated in … IT-131R2 [para. 1] a convention may be defined as a formal meeting of members of an organization for professional or business purposes. Words and Phrases convention ...

Expense- Know-How and Training distinction between training and convention expenses/ luncheon seminar fees on case law generally are professional deductions When asked whether expenses for attending a convention, seminar, luncheon meeting or other meeting incurred by an individual in the course of operating a business or an immovable are deductible, CRA stated: Training costs are not deductible as current expenses and are considered to be capital expenditures under paragraph 18(1)(b) if the training course to which they relate provides a lasting benefit to the taxpayer. ... As stated in paragraph 9 of IT-357R2, a training course should be distinguished from a convention. ... In addition, a convention does not become a training course when some of its sessions take the form of workshops. ...

12 March 2003 External T.I. 2002-0176955 F- Retenu dividende français-- summary under Article 10 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 10 Canadian mutual fund trust or pension fund trust deemed to be the beneficial owner of dividends by Art. 29(7)(a) of the Canada-France Convention CCRA indicated, regarding whether a dividend paid by a French corporation to a Canadian mutual fund trust or Canadian pension fund would be reduced pursuant to Art. 10(2)(c) of the Canada-France Convention, that assuming that such funds were resident in Canada as defined in Art. 4(1), any doubt as to whether they were the beneficial owners of the dividends would appear to be eliminated by Art. 29(7)(a) of the Convention. ...

Convention A Canadian resident employee, after qualifying for benefits under the unfunded long term disability plan ("LTD Plan") of the Canadian resident employer, becomes a resident of the U.S. ... While the LTD plan payments would be taxable as income from employment for purposes of the Act, such income would be considered as being pension income for the purposes of applying the provisions of the Convention. ... Consequently, one must refer to the provisions of Article XVIII of the Convention rather than those of Article XV (Income from Employment)…. ...

11 July 2006 External T.I. 2006-0182451E5 F- Indemnité versée par un syndicat-- summary under Paragraph 3(a) Summary Under Tax Topics- Income Tax Act- Section 3- Paragraph 3(a) payments by union to members to attend union conventions on their days off not taxable In order to encourage members to participate in union activities on their day off, the union compensates them during their attendance at union councils or conventions where matters such as working conditions, training, pressure tactics if necessary, and the general administration of the union are discussed. CRA stated: [W]here the member who attended the conventions is not employed by the union and the member does not carry on a business in the course of which the member receives those amounts, the amounts the member receives as compensation for attending union councils or conventions on their days off would not be derived from a source of income and would not be taxable. ...