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XIII(7) Canada-US Treaty and Trusts-- summary under Article 13 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 13 CRA lacks jurisdiction to determine whether a trust can elect under Art. ...

7 October 2022 APFF Roundtable Q. 7, 2022-0942731C6 F- Permanent establishment and teleworking-- summary under Article 5 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 5 having an employee, with general authority to contract, telework from his cottage in another province does not necessarily create an employer PE there Mr. ...

11 April 2023 Internal T.I. 2023-0964101I7- Tax issues for cross-border employees-- summary under Article 24 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 24 FICA contributions of a cross-border employee are deductible only re employment income from duties physically performed in the US A portion of the employment duties of a cross-border employee (with a hybrid work arrangement) is exercised from Canada in the year but the individual makes contributions under the U.S. ...

29 November 2022 CTF Roundtable Q. 4, 2022-0950561C6- Servers/Data Centres and Location of Services Rendered-- summary under Article 5 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 5 remote customer-support services from the US did not cause a Canadian services PE Canco licensed software of a US affiliate (USco), which it used to provide data analytics services to its Canadian customers. ...

29 November 2022 CTF Roundtable Q. 7, 2022-0951051C6- Permanent Establishment and Mining Activities-- summary under Article 5 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 5 where a UK company remotely operated crypto-mining equipment located on a Canadian host company’s premises, the equipment constituted a Canadian PE Hostco owned Canadian real estate that it used to host crypto-mining equipment owned (or leased) by a UK company (UKco). ...

2024 Ruling 2019-0817961R3- Swiss Collective Investment Scheme-- summary under Article 10 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 10 Swiss collective investment vehicle treated as flow-through for purposes of the pension/ retirement fund dividend exemption in the Canada-Swiss treaty Background/ structure A collective investment scheme (the “Fund”) established under Swiss law is an arrangement by which investors pool their assets to be managed by and in the name of a Swiss regulated fund management company (the “Management Company’) for the account of the investors, whose proportionate entitlements to income and cash or in-kind redemption proceeds are represented by non-voting units. ...

. … [T]here is no relief available to a taxpayer under the Canada-Barbados Tax Convention to override the two-year limitation period required by subsection 227(6). ...

7 July 2022 Internal T.I. 2021-0893791I7- Interest expense on subordinated income instrument-- summary under Article 9 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 9 OECD principles re interest on related-party debt In the early 1980s, Holdco received a ruling as to the deductibility (subject to ITA s. 18(4)) of its interest expense on a 40-year U.S. $15 million debenture (“Debenture”) issued by it to Parent, which bore interest for each year of the lesser of 11% per annum and Holdco’s profits in that year. ...

20 June 2023 Internal T.I. 2021-0904981I7- Application of ss.227(6) to treaty benefits-- summary under Article 18 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 18 ITA s. 227(6) time limitation applied where “as if resident” clause is silent on the timing of refund claim As an example of an “as if resident” (“AIR”) clause, the Directorate referred to Art. 18(2) of the Canada-Italy Treaty which relevantly indicated that the tax which Canada could impose on a periodic pension arising in Canada does not exceed the lesser of (a) 15% of the excess of the annual pension amount over Cdn.$12,000, and (b) the amount of Canadian tax the recipient would have been required to pay on the annual pension amount had the recipient been resident in Canada. ...

12 December 2023 External T.I. 2021-0881541E5- Pension benefit from Chile-- summary under Article 18 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 18 an exceptional COVID-related withdrawal from a Chilean pension plan qualified as an exempted pension under the Canada-Chile Treaty The Chilean government, in response to the pandemic, adopted an exceptional measure (the “Measure”) in 2020, permitting the withdrawal of up to 10% of the pension savings in the individual pension accounts managed by the Pensions Funds Administrators (“AFP”) in Chile. ...