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3 November 2023 APFF Financial Strategies and Instruments Roundtable Q. 9, 2023-0976941C6- Withholding on registered plans-- summary under Article 18 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 18 RRSP/ RRIF payments are “pensions” under Art. ... XXII of the US Convention, but must be "periodic pension payments" for 15% rate to apply After indicating that the reduced rate of 15% under Art. ... Convention may be applied to amounts distributed to U.S. residents from TFSAs, RDSPs and RESPs (where such payments would have been income if the recipient had been resident), CRA went on to indicate that Art. ...

30 November 1996 Ruling 9729263- TRUST DISTRIBUTIONS TO NON-RESIDENT BENEFICIARIES-- summary under Article 11 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 11 Ruling that where income of a Canadian trust was distributed to a U.S. partnership, then subject to Article XXIXA of the Canada-U.S. Income Tax Convention, the provisions of that Convention would apply to a partner's share of the partnership income derived from the distributing trust. ...

CRA stated: Pursuant to paragraph 1 of Article XVIII of the Convention, amounts received from a traditional IRA by a Canadian resident may be taxed in Canada. ... Consequently, the Convention does not apply to prevent the 2010 conversion amount from being taxed in Canada. CRA noted, however, that "in many cases, Article XVIII of the Convention may apply to either defer or relieve taxation in Canada. ...

.- frais de garde-- summary under Article 19 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 19 employment income that was Treaty-exempt was to be reported (on a separate line), with the s. 110(1)(f)(i) deduction then claimed The wife of a couple, both of whom were Canadian residents, was a French national who received a salary that was exempt under Art. XIX, para. 1 of the Convention with France, that was not reported on a T4 information slip. ... Furthermore, a taxpayer's claim for exemption from Canadian tax under paragraph 1 of Article XIX of the Canada-France Convention in respect of salaries, wages and other similar remuneration, other than pensions paid by France, must be claimed on line 256 of the taxpayer's return with the words "Income not taxable under a convention" as a clarification. ...

The Other Income Article (Art. 21) of the Convention provides that items of income not dealt with in the foregoing Articles that is derived by a resident of Canada from sources in Romania may be taxed in Romania. ... Taking into account that on the facts Xco does not have a permanent establishment in Romania to which the management fees are attributable, the CRA would treat the net income attributable to the fees earned by Xco as "business profits", exempt from tax in Romania under Article 7 of the Convention. In our view, Article 21 of the Convention is therefore not applicable to the management fees. ...

16 August 2017 Internal T.I. 2017-0701291I7- Exclusive Distributorship Rights-- summary under Article 12 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 12 lump sum paid for distributorship rights was not a royalty In consideration for a lump sum, a non-resident in a Treaty country (NRco) granted an arm’s length Canadian company (Canco) the exclusive right to distribute its product in Canada, with Canco agreeing not to acquire or sell competitive products. ... A substantially similar definition of the term “royalties” [to that in the Treaty] is found in Article 12 of the Model Convention …. Paragraph 10.1 of the OECD commentary (the “OECD Commentary”) on Article 12 of the Model Tax Convention states that payments made in consideration for obtaining the exclusive distribution rights of a product in a given territory do not constitute royalties within the meaning of the Model Tax Convention as they are not made in consideration for the use of, or the right to use, an element of property included in the definition. ...

6 October 2017 APFF Roundtable Q. 6, 2017-0709041C6 F- Services PE-- summary under Article 5 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 5 there can be a services PE in Canada during the tail end of a project which ends in the first few months of a calendar year Where the conditions in Art. ... Convention (respecting a services PE) are satisfied during a taxation year respecting a particular project, which continues for several months longer in the following taxation year, but with the 183-day criteria not met in that subsequent year, will CRA consider that the enterprise nonetheless is deemed to have a permanent establishment in Canada during the subsequent year? CRA responded that "Since paragraph 9(b) of Article V of the Convention specifies that the 183-day test applies to 'any twelve-month period', that period may not correspond to the taxation year of the taxpayer," and then provided the following example: Pursuant to Article V, subparagraph 9(b) of the Convention, a United States enterprise, whose fiscal year-end is December 31, which provides services on an ongoing basis from January 15, 20_1, to January 25 20_2 shall be deemed to provide such services through a permanent establishment in Canada for the entire period. ...

.-- summary under Article 16 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 16 income earned by S Corp. of US athlete was taxable under Art. 16 Regarding income earned by a US-resident athlete from Canadian activities through an “S Corp.”, CCRA referred to the provisions of Art. XVI of the Canada-US Treaty, and stated: Although the provisions of Articles VII (Business Profits) and XIV (Independent Personal Services) of the Convention do not allow Canada to tax the income allocated by the athlete to another person because the latter does not have a permanent establishment (or fixed place of business) in Canada, paragraph 2 of Article XVI of the Convention constitutes an exception that allows Canada to tax the income accruing to the other person who is a resident of the United States. In other words, under the provisions of paragraph 2 of Article XVI of the Convention, Canada may tax the income of a corporation owned by the athlete (for example, an "S corporation") to the extent that such income is attributable to activities carried on in Canada by the athlete, regardless of the corporation not having a permanent establishment in Canada. ...

22 February 2011 External T.I. 2010-0374421E5- Motion Picture Copyright Royalties-- summary under Article 12 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 12 royalties for videos for home use are exempt under US, but not other, Treaties The exemption in the Canada-US Convention for royalties paid for the reproduction of motion picture films (in this case, on videos) for private home use rests on the 1984 US Treasury Explanation to that Convention. ...

Expense- Know-How and Training convention expenses "historically" viewed as capital expenditures CRA stated: Where a taxpayer has incurred expenses related to a convention in order to earn income from a business and such expenses are not capital expenditures, such expenses may be deductible in computing its business income without reference to subsection 20(10). Historically, the CRA's position with respect to convention expenses is that such expenditures are generally capital expenditures to which paragraph 18(1)(b) applies. ...