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14 August 2007 Ministerial Correspondence 2007-0239511M4- Convention Expenses Unedited CRA Tags 20(10) Principal Issues: What are the criteria for the deductibility of convention expenses? ... It is not necessary that the taxpayer be a member of the organization sponsoring the convention, but attendance at the convention must be related to the business or professional practice carried on by the taxpayer. ... Tax Convention, its territorial scope is considered to include the United States for purposes of deducting convention expenses. ...

Income Tax Convention (the "Convention"). It is our view that where an income tax convention or agreement uses the word "gains" it is referring to a capital gains otherwise the term income, business profits or some other specific type of income is generally referred to. When interpreting a passage of a tax agreement or convention which is not clear, the Income Tax Conventions Interpretations Act (the "Interpretations Act") permits the interpreters to review the background papers and the intention of the negotiators when drafting the tax agreement or convention. ... As an example, amounts that constitute income from real property which fall within the specific provisions of Article VI of the Convention could not fall within Article XIII of the Convention as the income from real property provision is more specific. ...

7 July 1991 Income Tax Severed Letter- Canada-Barbados Income Tax Convention Unedited CRA Tags 126, Canada-Barbados Income Tax Convention article XIII, XXV Subject: Canada-Barbados Income Tax Convention This is in reply to your letter dated May 21, 1991 regarding the foreign tax credit provisions of the Canada-Barbados Income Tax Convention (the "Convention"). ... It applies to give a Barbados source, for purposes of the Convention and of section 126 of the Act, to income of a Canadian resident that is taxed in Barbados in accordance with the Convention. ... This is the lowest withholding rate of any tax convention that Barbados has concluded. ...

7 October 1991 Income Tax Severed Letter- Deduction of Convention Expenses Unedited CRA Tags 20(10), Canada–U.S. ... You have also assumed that the Department would look to the self-employed person's ties to the national organization in determining whether a convention is a qualifying convention. ... " Although a taxpayer's ties to a national organization may be a factor in determining whether or not the convention expense claim is valid, a taxpayer's ties to a particular organization would not, in and by itself, necessarily establish that the convention is what you refer to as a qualifying convention. ...

You have also assumed that the Department would look to the self- employed person's ties to the national organization in determining whether a convention is a qualifying convention. ... With respect to your questions regarding sponsoring organisations and qualifying conventions, the following concluding comments in paragraph 1 would appear to be relevant:     "It is not necessary that the taxpayer be a member of the organization sponsoring the convention but attendance at the convention must be related to the business or professional practice carried on by the taxpayer." Although a taxpayer's ties to a national organization may be a factor in determining whether or not the convention expense claim is valid, a taxpayer's ties to a particular organization would not, in and by itself, necessarily establish that the convention is what you refer to as a qualifying convention. ...

Income Tax Convention (the "Convention") This is in reply to your memorandum of October 19, 1989 concerning what is meant by the term "gain which is liable to tax in that other State" in paragraph 9 of Article XIII of the Convention. ... Article III of the Convention provides a definition of many terms used in the Convention, however, the article does not define the term "gain" for purposes of the Convention. ... Since the Competent Authority of Canada has not agreed to the meaning of any term under subparagraph (d) of paragraph 3 of Article XXVI of the Convention and the term gain is not defined in the Convention, paragraph 2 of Article III of the Convention will apply. ...

Income Tax Convention (the "Convention") This is in reply to your memorandum of October 19, 1989 concerning what is meant by the term "gain which is liable to tax in that other State" in paragraph 9 of Article XIII of the Convention. ... Article III of the Convention provides a definition of many terms used in the Convention, however, the article does not define the term "gain" for purposes of the Convention. ... Since the Competent Authority of Canada has not agreed to the meaning of any term under subparagraph (d) of paragraph 3 of Article XXVI of the Convention and the term gain is not defined in the Convention, paragraph 2 of Article III of the Convention will apply. ...

Paragraph 9 of Article XXV of the Tax Convention provides that expenses in respect of a convention should not be disallowed in computing income of a taxpayer resident in a contracting state only because the convention took place in another contracting state. ... For more comments on the application of paragraph 9 of Article XXV of the Tax Convention, we refer you to the Technical Explanatory notes to the Tax Convention drafted by the U.S. ... Similarly, in the case of a citizen or resident of Canada attending a convention in the United States, paragraph 9 requires Canada to allow a deduction for expenses relating to such convention as if the convention had taken place in Canada. ...

Income Tax Convention SEP 5 1989 International Audits Division Specialty Rulings Directorate K.B. ... Income Tax Convention (the "Convention") This is in reply to your memorandum of June 27, 1989 wherein you requested our opinion concerning the treatment of capital gains arising from the disposition of real property under Article XIII of the Convention. ... In our opinion paragraph 3 of Article XIII of the Convention was intended to tax capital gains on the disposition of shares of the capital stock of a company, the value of which is derived principally from real property as that term is defined in the Convention (i.e. including not only real property as defined in Article VI of the Convention but also shares of the capital stock of other corporations or an interest in a partnership, trust or estate which is real property as defined in subparagraph 3(b) of Article XIII of the Convention). ...

31 August 1989 Income Tax Severed Letter 5-8357- Subparagraph 4(a) of Article 11 of the Canada-Netherlands Income Tax Convention of 1986 Unedited CRA Tags 212(1)(b), 251(1)(b), Canada–Netherlands Income Tax Convention art. 11 Dear Sirs: We are writing in response to your letter of July 6, 1989 in which you requested the Department's opinion regarding the application of paragraph 212(1)(b) of the Income Tax Act (the “Act”) and subparagraph 4(a) of Article 11 of the Canada-Netherlands Income Tax Convention of 1986 (the “Convention”) in the situation described below. ... We assume that, in the situation you describe, NethCo is, pursuant to paragraph 1 of Article 4 of the Convention, a resident of the Netherlands for the purposes of the Convention and that the only requirement of subparagraph 4(a) of Article 11 of the Convention that may not be met is the requirement that CanCo and NethCo deal with each other at arm's length for the purposes of the Convention. ... Where NethCo is so resident in Canada for the purposes of the Act and paragraph 3 of Article 4 of the Convention applies to deem NethCo not to be a resident of the Netherlands for the purposes of Article 11 of the Convention, subparagraph 4(a) of Article 11 of the Convention will not apply to preclude Canada from taxing any interest paid by CanCo to NethCo in accordance with the provisions of the Act. ...