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2011 Ruling 2011-0416891R3- Fees for Digital Content & Management Services-- summary under Article 12 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 12 A US LLC ("Corporation C"), whose sole member was a US corporation qualifying for benefits under the Canada-US Convention, ran a platform for the provision of "Digital Content" (movies, television shows, music videos, documentaries and similar audio-visual content) which it (and affiliated corporations) were permitted to distribute under content licence agreements with the third-party holders of the copyright. ... XII(3)(a) of the Convention. The exclusion in that provision for "payments in respect of motion pictures," was not discussed (presumably because it was accepted not to be applicable- see 2011-0374421E5). ...

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. ...

28 November 2011 November CTF Roundtable, 2011-0426591C6- Deemed services permanent establishment-- summary under Article 5 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 5 subcontracting Where a US company (USCo) subcontracts part of its contract, to perform consulting services to an arm's length Canadian customer (Canco) to related US corporation (USCo 2), whose employees will spend over 183 days in Canada on the project in a 12 month period, then s. 9(b) of Art. V of the Canada-US Convention will deem the services to have been provided by USCo through a permanent establishment in Canada. ... Furthermore: as the discussion in paragraph 42.43 of the [OECD] Commentary pertains to the interpretation of wording that is materially unlike the wording of subparagraph 9(b) or Article V of the Convention…. it is not of assistance in interpreting the latter provision. ...

19 August 2010 External T.I. 2009-0344111E5 F- Résidence Société Capital-Risque- Conv Can-France-- summary under Article 4 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 4 French venture capital corporation is resident in France (“liable to tax”) notwithstanding that it has elected to be exempt on its portfolio gains In finding that a French venture capital corporation ("VCC"), that was resident in France for French taxation purposes by virtue of its domicile as well as its effective place of management, and that had elected to be exempt from French corporate income tax respecting current income and capital gains on the sale of securities included in its portfolio, was a resident of France for purposes of the Canada-France Income Tax Convention, CRA stated: [A] VCC is liable to tax in France by reason of its domicile, residence, place of management or any other criterion of a similar nature, as provided for in paragraph 1(a) of Article IV of the Convention, notwithstanding the fact that it may have opted for exemption from French corporation tax. ...

15 March 2006 External T.I. 2005-0124911E5 F- Prestation compensatoire française-- summary under Article 18 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 18 life annuity, was to be treated for Treaty purposes as alimony or similar payments since it was treated by CRA as a support amount under ITA A resident of France was awarded compensatory benefits by order of the applicable French court on her divorce from her husband, consisting of a lump sum (payable in two instalments, separated by a year) and a life annuity payable on a monthly basis. ... CRA referred to Art. 18(4) of the Canada-France Convention, which provided: Alimony and other similar payments arising in a Contracting State and paid to a resident of the other Contracting State who is subject to tax therein in respect thereof, shall be taxable only in that other State. It found that since the life annuity (but not the lump sum) was treated under Canadian domestic tax law (s. 56.1(4)) as a taxable support amount, Art. 3(2) of the Convention deemed it to be amounts referred to in Art. 18(4), so that Canada had the exclusive right to impose tax thereon. ...

REAL PROPERTY INTEREST & FTC (5638-2)-- summary under Article 24 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 24 FTC for U.S. ... Income Tax Convention …, the U.S. has the right to tax Mr. A's gains on the disposition of his Canco's shares, as described … above. Furthermore, paragraph 3(a) of Article XXIV … provides that gains of a resident of Canada which may be taxed in the U.S. in accordance with the Convention shall be deemed to arise in the United States for the purposes of Article XXIV and paragraph 2(a) of Article XXIV provides that, subject to the provisions of the Act, Canada must permit a foreign tax credit in respect of income tax paid to the United States on gains arising in the United States. ...

Expense- Know-How and Training deducible cost of cruise that included seminars would not exceed the cost of a comparable domestic course 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, and that para. 2 indicated that where the taxpayer takes a training course merely to maintain, update or upgrade an already existing skill or qualification respecting the individual’s business or profession, expenses incurred in connection with such a course are not considered to be capital in nature. ... If the costs were incurred in connection with a convention, nothing would be deductible because an ocean cruise is considered to occur outside Canada ...

21 November 2023 Internal T.I. 2021-0880101I7- Article 5(3)(b) of the Canada-Mexico Treaty-- summary under Article 5 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 5 the “six months” test in Art. 5(3)(b) of the Mexico Treaty should be day-counted (more than 183 days) Art. 5(3)(b) of the Mexico-Canada Convention provides that a “permanent establishment” includes: (b) the furnishing of services, including consultancy services, by an enterprise through employees or other personnel engaged by the enterprise for such purpose, but only if activities of that nature continue (for the same or a connected project) within a Contracting State for a period or periods aggregating more than six months within any twelve month period Regarding how “six months” should be computed, the Directorate first noted that, as this was an undefined term, it was to be determined in accordance with “Canadian domestic tax law,” and then stated: Considering that the testing period of six months is not required to be consecutive, the only reasonable interpretation of the term “periods aggregating more than” six months within any twelve month period” is to aggregate the number of days equivalent to the number of months. This interpretation was supported by Art. 5(3)(b) of the 2001 UN Model Convention, on which Art. 5(3)(b) of the Canada-Mexico Treaty was based, in 2011 having replaced the previous “six months” test by a “183 days” test, and by Kayelle. ...

(Tax Window, No. 13, p. 23, ¶1610)-- summary under Article 3 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 3 Because a partnership is not a "company" for purposes of the Canada-U.S. Convention, a partnership of two corporations will not be eligible for the reduced withholding tax rate on dividends of 10% for a company owning at least 10% of the voting shares of the payor. ...

(Tax Window, No. 13, p. 8, ¶1601)-- summary under Article 18 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 18 If a transfer out of a U.S. pension plan directly into an IRA would not have resulted in the amount being taxed in the U.S. had the person been resident there at the time of the transfer, the exemption of Article XVIII of the Canada-U.S. Convention will apply. ...