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28 April 2008 External T.I. 2007-0238071E5 F- Voiturier public-- summary under Article 8 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 8 taxpayer need not own the vehicles or operate them provided that it is engaged in all other aspects of the transporting service and is responsible to the customers The taxpayer uses the services of subcontractors to have the goods transported, but handles all other aspects of the business and remains responsible to both the sending and receiving customers. ... Convention, CRA stated: In our view, a person who carries on the business of providing, for consideration, a service of transporting property from one place to another and who generally offers its services to the public, is a common carrier. ... However, in order to claim that it is the taxpayer who provides the transportation service and who is engaged in the operation of motor vehicles as a common carrier, it would be necessary for the taxpayer to have some involvement in the operations of the business by maintaining, for example, a certain degree of control and supervision over the transportation service. … [I[f the facts indicate that the taxpayer … is otherwise a common carrier, that the taxpayer is engaged in all aspects necessary for the proper operation of a business providing a transportation service for the transportation of goods (other than the transportation itself) such as rate setting, billing, advertising, the establishment of service standards, the establishment of drop-off points, the receipt of orders from shipper customers, and that the taxpayer remains liable to both shipper and receiver customers, we could conclude that the taxpayer is engaged in the operation of motor vehicles as a common carrier for the purposes of paragraph 4 of Article VIII of the Convention. ...

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. ...

1 June 2018 External T.I. 2017-0723051E5- Meaning of "Relieved from Tax"-- summary under Article 29 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 29 Canadian royalties received exempt of U.K. tax by non-dom U.K. resident not eligible for Treaty-reduced rate A Canadian author (X) who became resident but not domiciled in the UK thereafter received royalties from a Canadian publisher, that were not subject to U.K. tax because they not remitted to the UK. ... Art. 27(2) provides: Where under any provision of this Convention any income is relieved from tax in a Contracting State and, under the law in force in the other Contracting State a person, in respect of that income, is subject to tax by reference to the amount thereof which is remitted to or received in that other Contracting State and not by reference to the full amount thereof, then the relief to be allowed under this Convention in the first-mentioned Contracting State shall apply only to so much of the income as is taxed in the other Contracting State. ...

11 May 2012 External T.I. 2011-0428791E5- Foreign Tax Credit-- summary under Article 24 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 24 Respecting a question as to the availability of a foreign tax credit for state franchise tax paid by a Canadian taxpayer (Canco), CRA (after indicating that the tax potentially would qualify for a credit), CRA went on to indicate that Article XXIV of the Canada-US Convention would not provided relief where the foreign tax credit was not available and the franchise tax was imposed notwithstanding the absence by Canco of a permanent establishment in the state (presumably given that the income in question would not be deemed to arise in the US under Art. ...

3 December 2002 External T.I. 2002-0173855- Removal computer software OECD abservation-- summary under Article 12 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 12 Respecting the position of Canada that after May 27, 2002 a payment for the use of custom computer software will only be subject to the royalty article of a particular convention if there is a reference to other intangible property in the royalty definition and there is no specific exclusion in the royalty article for computer software, CCRA noted that there is no change in assessing practices for payments made before March 28, 2002. ...

19 April 2011 External T.I. 2011-0392761E5- Motion picture films, ITA 212(5)-- summary under Article 12 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 12 A Canadian-resident company (Canco) uses motion pictures distributed to it by a US and French company by reproducing them in Canada in digitized form and encrypting, in order that it can provide them to Canadian customers using its specialized software. ... XII, para. 4(a) of the Canada-France Convention are satisfied. ...

30 August 2011 External T.I. 2011-0402471E5- Article V(9)(a), VII(1)-- summary under Article 5 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 5 Where self-employed US-resident individual provides services in Canada January 1-January 31 and October 1-December 31 in one year, and January 1-April 30 in the next year, the fact that the services in the October-April period (being more than 183 days) are deemed to be performed through a permanent establishment in Canada does not influence the tax treatment of the January period. ... Convention] does not deem a [permanent establishment] to exist in Canada to which income from services provided at another time could be attributed. ...

1 June 2009 External T.I. 2009-0319481E5- Dividends Paid to S Corporation-- summary under Article 4 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 4 The Canadian rate of withholding tax on a dividend paid by a Canadian corporation, that is fiscally transparent for U.S. purposes, to an S Corp of which an individual resident of the U.S. is the shareholder, will be subject to a 25% withholding tax due to Article IV(7)(b) of the Canada-U.S. Convention. Furthermore, Article IV(6) will not apply to treat the dividend as being derived by the shareholder of US Co because for U.S. purposes the shareholder will not be considered to have derived a dividend through US Co given the fiscally transparent nature of the Canadian corporation. ...

8 April 2003 External T.I. 2003-000199-- summary under Article 13 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 13 After referring to Bromley v. ... Convention generally requires that more than 50% of the value of the shares being alienated be derived from immovable property or a right referred to in paragraph 4 of Article 13 in order for paragraph 5(a) to apply. ...

24 February 2011 Internal T.I. 2010-0387901I7- Permanent Establishment-- summary under Article 5 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 5 construction site PE is conclusive as to existence of PE Paragraph 3 of the OECD Model Convention (providing that "a building site or construction or installation project constitutes a permanent establishment only if it lasts more than twelve months") represents a stand alone test for determining whether a site or project qualifies as a permanent establishment, so that once the requirements of that paragraph have been satisfied, a permanent establishment will be found to exist and it is not necessary to consider whether the "basic rule" in paragraph 1 has been satisfied. ...