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9 July 2021 Internal T.I. 2021-0893981I7- CERB received by non-residents-- summary under Article 15 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 15 Other Income Art. accords Canada full right to tax CERB payments Regarding the treatment of payments (“CERB Payments”) made pursuant to the Canada Emergency Response Benefit Act (the “CERB Act”) to an individual who was a non-resident of Canada for purposes of the Act and Art. IV of Canada’s Income Tax Conventions, the Directorate, after indicating that the CERB Payments were required by ss. 56(1)(r)(iv.1) and 115(1)(a)(iii.22) to be included in computing the taxable income earned in Canada of the non-resident, noted that Art. 15 (Employment Income) of a relevant Treaty will not govern the CERB Payments (there is no employer-employee relationship between the payor and the payee) and (analogously to employment insurance compensation) the “Other Income” Article of the relevant Treaty will apply to determine whether Canada can maintain its right to tax the CERB Payments. ...

14 July 2022 Internal T.I. 2020-0869441I7- Article XVI(4) of Canada-US Treaty-- summary under Article 16 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 16 a US athlete’s Canadian “signing bonus” was in substance employment remuneration for Treaty purposes A U.S. ... Convention rather than the Canadian tax rate being limited under Art. ...

For purposes of the application by Canada of the Canada-France Convention, it is a “company” within the meaning of the definition thereof in Art. 3(1)(c) of such Convention. ...

12 September 2019 External T.I. 2017-0732681E5- Payment of pension surplus to US resident beneficiary-- summary under Article 18 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 18 Reg. 8503(26) minimum amount payments or commutation payments are lump sums ineligible for reduction under Canada-U.S. ... Treaty, s. 5 of the Income Tax Conventions Interpretation Act “expressly excludes a lump sum payment,” CRA rejected the submission that the “final distribution payment to the daughter is simply an extension of the periodic guarantee payments that the daughter was receiving and thus should be eligible for the reduced withholding tax rate under the Treaty” (so that the non-Treaty reduced rate of 25% applied) stating: [T]he final distribution payment is a lump sum payment of an actuarial surplus that relates to the IPP, which is a permissible distribution pursuant to [Reg.] 8502(d)(vi) …. ...

27 August 2012 External T.I. 2011-0416181E5- US internet publisher- CDN resident advertiser-- summary under Subparagraph 212(1)(d)(iii) Summary Under Tax Topics- Income Tax Act- Section 212- Subsection 212(1)- Paragraph 212(1)(d)- Subparagraph 212(1)(d)(iii) 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. ... However, given CRA's interpretation of the fees as being consideration for services, they would not constitute royalties under Article XII of the Canada-US Income Tax Convention, and they would not be taxable under Art. ...

Income Tax Convention, a portion of the income from Canco'’s Canadian XX business must be re-sourced to the U.S. for the purposes of section 126 of the Act. ... CRA went on to find that, given that gains or losses on the shares were not subject to Canadian income tax by virtue of the Convention, they were deemed by s. 126(6)(c) to be a separate source for purposes of s. 126. ...

2013 Ruling 2012-0471921R3- Deemed dividend on return of capital-- summary under Article 4 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 4 PUC increase and distribution Canco and U.S. ... Income Tax Convention (the "U.S. Treaty"), but is not a qualifying person for purposes of the U.S. ...

11 April 2014 Internal T.I. 2013-0474851I7 F- Permanent establishment in Canada-- summary under Article 5 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 5 equipment installation project of Franceco lasting more than 12 months including preparing specs and final testing Franceco was engaged to install specialized equipment purchased by an arm's length Canadian company (Canco) for modernizing and expanding the capacity of its Canadian factory (the "Project"). ... Respecting whether the Project was an installation project for purposes of Art. 5, para. 3 of the Canada-France Convention, the Directorate stated (TaxInterpretations translation) that "Franceco undertook not only to supervise the tasks accomplished by the local sub-contractors, but also had the general responsibility to undertake the equipment installation" and that the "presence of the employees of Franceco in Canada was essential as their expertise was required to achieve the Project. ...

6 July 2012 Internal T.I. 2012-0440741I7- stock option benefit derived by US resident-- summary under Paragraph 153(1)(a) Summary Under Tax Topics- Income Tax Act- Section 153- Subsection 153(1)- Paragraph 153(1)(a) employer reimburser of stock option benefit amount subject to withholding obligation 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 who performed employment duties for USCo in Canada for 55, 100 and 75 days in 2009, 2010 and 2011, respectively. ... After noting that the stock option benefit would be exempt from Canadian tax under the exemption in para. 2 of Article XV of the Canada-US Convention, CRA asserted that this did not relieve USCo of its source deduction obligations: The corporation that has agreed to sell or issue the shares to the employee (in this case, Canco) will be considered to be the "payer" of the stock option benefit for purposes of paragraph 153(1)(a) (and will be responsible for the normal withholding), unless it receives reimbursement, in whole or in part, either directly or indirectly, in respect of the benefit. ...

13 April 2017 External T.I. 2015-0601781E5- U.S. tax paid in respect of an LLC's income-- summary under Article 24 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 24 Canada's denial of foreign tax credits re undistributed LLC income is consistent with Art. 24 of Canada-US Treaty A Canadian-resident individual who is a member of a U.S. ... In particular, after noting that the OECD Commentary on Art. 23B of the Model Convention “expressly contemplates that states may impose timing restrictions on claiming foreign tax credits,” and that where this is so “these countries…would be expected to seek other ways…to relieve the double taxation which might otherwise arise in [such] cases,” CRA stated: In the case of Canada, such “other ways … to relieve the double taxation” include deductions allowed under subsections 20(11) and 20(12) of the Act. ...