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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. ... Convention defines "pensions" to include any payment under a disability plan "a U.S. resident employee receiving LTD Plan payments could file a Canadian income tax return in order to obtain a refund of any withholdings made in excess of the 15% amount specified in paragraph 2 of Article XVIII. ...

6 July 2012 Internal T.I. 2012-0440741I7- stock option benefit derived by US resident-- summary under Subparagraph 115(1)(a)(i) Summary Under Tax Topics- Income Tax Act- Section 115- Subsection 115(1)- Paragraph 115(1)(a)- Subparagraph 115(1)(a)(i) USCo, which is a qualifying person for purposes of the Canada-US Income Tax Convention and is a wholly-owned subsidiary of a Canadian public company, employed a US-resident individual and performed employment duties for USCo in Canada for 55, 100 and 75 days in 2009, 2010 and 2011, respectively. ... Before considering the effect of the Canada-US Convention, CRA stated that Canada's default position regarding the allocation of the stock option benefit is that a stock option benefit is allocable to the services rendered in the year of grant, unless it is clear from the circumstances that some other period is more appropriate, and vesting is not relevant. ...

21 September 2012 External T.I. 2012-0457951E5- Fee for Information-- summary under Article 12 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 12 information on customer leads was exempted as information on commercial experience CRA was asked whether the payment by a Canadian insurance broker (Aco) to a US insurance broker (Bco) of a percentage of the commissions earned by Aco, as a result of Bco providing Aco with information respecting US customers of Bco who wanted coverage for Canadian assets, would be subject to withholding under Reg. 105 or s. 212(1)(d). ... XII of the Canada-US Income Tax Convention: Where a resident of the U.S. is in receipt of payments for services made in the course of its business carried on in the U.S., it would be exempt from taxation in Canada by virtue of paragraph 1 of Article VII of the Treaty. ...

21 April 2015 External T.I. 2013-0494251E5- 128.1(4) and Part XIII tax on future payments-- summary under Article 12 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 12 client list utilization payments to U.S. resident At the time of his emigration from Canada to the US, "Mr. ... XII, para. 4 of the Canada-US Tax Convention (the "Treaty"). ...

17 May 2012 IFA Roundtable, 2012-0444151C6- Hybrid Partnerships and Branch Tax Liability-- summary under Article 10 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 10 The two partners of a partnership which has elected to be a domestic corporation for Code purposes are: a corporation which is resident in the U.S. for purposes of the Canada- U.S. Income Tax Convention; and a corporation resident in a non-Treaty country. ...

7 March 2012 External T.I. 2011-0427551E5 F- Établissement stable-- summary under Article 5 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 5 presence of employee in Dominican Republic who did not habitually exercise general authority to contract did not constitute a PE Canco entered into supplementary service and support agreements with a corporation resident for all purposes in the Dominican Republic (the “Particular Country”) in order that NRco could provide customer support services to Canco's clients present there. ... CRA stated: [T]he mere presence of the Canco Employee in the Particular Country would not cause there to be a permanent establishment in the Particular Country of Canco under Article V of the Convention. ...

LLC-- summary under Article 29 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 29 single member LLC with dual resident member could elect to be C-Corp and S-Corp, and then consider applying for relief under Art. 29(5) A single-member disregarded U.S. limited liability company (“SMLLC”), whose member is a resident of Canada, is factually resident in Canada and, thus subject to Part I tax, whereas U.S. source income (e.g., business income form a U.S. permanent establishment) would also be subject to U.S. income tax in the hands of the member, without the SMLLC being entitled to claim any foreign tax credit for such U.S. tax paid by its member. Is there Convention relief from double taxation? CRA noted that if the member was a dual resident or U.S. citizen, and the LLC elected to be taxed as an S-Corp after electing to be taxable as a C-Corp, it would be subject to pass-through taxation for U.S. income tax purposes like a typical disregarded US LLC. ...

11 December 2002 Internal T.I. 2002-0173007 F- Observation aux commentaires (OCDE)-- summary under Article 12 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 12 Canada’s withdrawal of its observation on Art. 12 on March 28, 2002 was prospective, and did not affect its right to impose withholding tax on payments for use of a secret process prior to that date The TSO proposed to impose withholding tax (at a Treaty-reduced rate of 10%) on consideration paid prior to March 28, 2002 by a Canadian resident, for the granting by a UK resident of permanent non-exclusive licences allowing the Canadian resident to use, download, execute, employ and store software owned by the non-resident, on the basis that the payments met the definition of "royalties" in Art. 12(4) of the Canada-UK convention, since they were regarding the use of a secret formula or process. ...

9 October 2020 External T.I. 2020-0847791E5- CEWS 81(1)(a) and treaty exempt entities-- summary under Paragraph (a) Summary Under Tax Topics- Income Tax Act- Section 125.7- Subsection 125.7(1)- Eligible Entity- Paragraph (a) a Treaty exemption for income does not preclude being an eligible entity for CEWS purposes Is a non-resident corporation that operates an airline that normally flies to and from Canada qualify as an “eligible entity” notwithstanding that a part or all of its income may not be included in computing its income for a taxation year by the operation of an applicable Income Tax Convention between Canada and s. 81(1)(a)? ... In our view, a non-resident corporation that operates an airline, a portion of whose Canadian source income is not included in the computation of its income under Part I of the Act as a result of the operation of paragraph 81(1)(a) and a provision under an income tax convention between Canada and another State is not a corporation“ exempt from tax under Part I” under the definition of “eligible entity” in subsection 125.7(1) and therefore would not be prevented from being an “eligible entity” on that basis. ...

27 October 2020 CTF Roundtable Q. 5, 2020-0864281C6- Article IV:6 of the Canada-US Treaty-- summary under Article 10 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 10 choice between application of France and US Convention to dividends paid by Canco at bottom of multi-tier structure A partnership whose partners are resident in the U.S. and in other countries with which Canada does and does not have a treaty owns a French entity (that is fiscally transparent for U.S., but not Canadian or French purposes) that earns dividends and interest from a Canadian company. ...