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22 June 2012 External T.I. 2011-0416521E5- Share Options and Taxable Canadian Property-- summary under Article 13 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 13 share no longer includes option The definition in Art. XIII of the Canada-US Convention of "real property situated in the other Contracting State" includes, in the case of real property siuated in Canada "a share of the capital stock of a company that is a resident of Canada, the value of whose shares is derived principally from real property situated in Canada;" and Art. ...

18 October 2011 External T.I. 2010-0381951E5- Existence of permanent establishment in Canada-- summary under Article 5 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 5 Canadian server as pe CRA indicated that a website cannot be a permanent establishment under Article V of the Canada-U.S. Convention because a website is intangible- however, the server that provides the website can be a physical location if it is fixed in place and business is carried on through that server. ...

27 August 2012 External T.I. 2011-0416181E5- US internet publisher- CDN resident advertiser-- summary under Subparagraph 212(1)(d)(i) Summary Under Tax Topics- Income Tax Act- Section 212- Subsection 212(1)- Paragraph 212(1)(d)- Subparagraph 212(1)(d)(i) clicks fees to website A US website publisher, which qualifies for benefits under the Canada-US Income Tax Convention and does not have a server or other permanent establishment in Canada, enters into an arrangement with an independent Canadian-resident promoter (the "Promoter") under which the Promoter will sell advertising space on the website to Canadian advertisers. ... Before going on to consider the application of s. 212(1)(d)(iii)(A) and the provisions of the Convention, CRA found that the fees should be characterized as being for services of the US publisher (as its employees would by uploading the ads to the website and carrying out various maintenance functions), so that no withholding tax would be exigible under s. 212(1)(d)(i). ...

2011 Ruling 2011-0416891R3- Fees for Digital Content & Management Services-- summary under Paragraph 212(4)(a) Summary Under Tax Topics- Income Tax Act- Section 212- Subsection 212(4)- Paragraph 212(4)(a) management of on-line store 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). ...

2012 Ruling 2012-0432141R3- Server as a permanent establishment-- summary under Article 5 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 5 Canadian data centre The taxpayers (USCo and its indirect subsidiary, NRCo) run various websites and related mobile services in order to gain advertising revenue, and to enable third parties to sell digital content, with one of the taxpayers receiving a percentage of the proceeds. ... Treaty (in the case of USCo) and for purposes of the "Convention" (in the case of NRCo). ...

23 July 2014 Internal T.I. 2014-0525231I7- Foreign tax credit-- summary under Article 24 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 24 s. 40(3) gain had Cdn source because not taxed in Japan Canco paid Japanese income tax on the capital gain reported on the distribution by it of its shares of a Japanese subsidiary ("Forco") to its non-resident parent as a dividend-in-kind, and claimed a foreign tax credit against the Canadian income tax payable on the taxable portion of the s. 40(3) gain realized as a result of a dividend distribution from Forco earlier in the year. After concluding that Canco would not be entitled to a FTC on the basis inter alia that "a taxable capital gain resulting from a deemed disposition of property is considered to be Canadian-source income, which therefore cannot be included in the foreign non-business income for purposes of claiming a FTC," the Directorate went on to state: Article 21 [of the Canada-Japan Treaty] deems gains of a resident of Canada, which are taxed in Japan under the Convention, to arise from a source in Japan and requires Canada to provide a credit in respect of such Japanese tax against any Canadian tax payable on such gains. ...

2012 Ruling 2012-0458361R3- Cross-Border Financing-- summary under Article 29A Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 29A ECo, which is fiscally transparent for U.S. purposes and resident in the U.S. ... Convention), makes a loan (the "Charlie Debt") bearing non-participating interest to CCo, which is a CBCA corporation and affiliated with Eco. ...

2012 Ruling 2012-0458361R3- Cross-Border Financing-- summary under Article 4 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 4 derivative benefit re loan interest ECo, which is fiscally transparent for U.S. purposes and resident in the U.S. ... Convention), makes a loan (the "Charlie Debt") bearing non-participating interest to CCo, which is a CBCA corporation and affiliated with Eco. ...

13 January 2014 External T.I. 2013-0512581E5- Sale of shares of Brazilian corporation-- summary under Article 24 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 24 "income" includes taxable capital gains The capital gain realized by a resident of Canada ("Canco") on disposing of shares of a Brazilian company was taxed by Brazil in accordance with Art. 13 of the Canada-Brazil Treaty. Art. 22, para. 2 provides: [W]here a resident of Canada derives income which, in accordance with the provisions of this Convention, may be taxed in Brazil, Canada shall allow as a deduction from the tax on the income of that person, an amount equal to the income tax paid in Brazil, including business-income tax and non-business-income tax. ...

26 February 2014 External T.I. 2013-0487961E5- Excluded Right or Interest-- summary under Article 15 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 15 apportionment of stock option benefits based on situs of employment during vesting period A senior employee of Canco, who is entitled to receive "free shares" from treasury as determined by management, with a vesting period of 4 to 6 years from the grant of the rights. ... After finding that there would be no deemed disposition of such a right on emigration by virtue of s. 128.1(4)(b)(iii), CRA went on to state, respecting which country has primary taxing rights as the country of source when the shares are issued: CRA has taken the position that for stock options exercised after 2012, the principles set out in paragraphs 12 to 12.15 to the Commentary on Article 15 of the OECD Model Convention will be applied to allocate a stock option benefit for purposes of the Act, unless an income tax treaty specifically applies to produce a different outcome.... ...