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Position: (1) Yes (2) Subsection 4(1)(b), the Revised Commentaries on Article 7 of the OECD Model Tax Convention and the OECD Report on the Attribution of Profits to Permanent Establishments provide some guidance when determining how to allocate income as pertaining to a foreign jurisdiction. ... It is an agreed fact that for US federal income tax and the Canada-US Tax Convention, Canco is not considered to be carrying on business in the US through a permanent establishment ("PE"). ...

.), as amended to the date hereof, and unless otherwise stated, every reference herein to a Part, section, subsection, paragraph or subparagraph is a reference to the relevant provisions of the Act; (b) "Canada-Luxembourg Treaty" means the Convention Between the Government of Canada and The Government of the Grand Duchy of Luxembourg for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion With Respect to Taxes on Income and on Capital, signed on September 10, 1999; (c) "Canada-US Treaty" means the Convention Between Canada and The United States of America With Respect to Taxes on Income and on Capital, signed on September 26, 1980, as amended by the Protocols signed on June 14, 1983, March 28, 1984, March 17, 1995 and July 29, 1997; (d) "Code" means the Internal Revenue Code of the United States of America; (e) XXXXXXXXXX; (f) "Foreign Parent" means XXXXXXXXXX; (g) "Foreign Sub1" means XXXXXXXXXX; (h) "Foreign Sub2" means XXXXXXXXXX; (i) "Group" means, collectively, Foreign Parent and each of its direct and indirect subsidiaries; (j) "Holdco" means XXXXXXXXXX a company organized as a Luxembourg Public Limited Liability Company (Société Anonyme); (k) "ITAR" means the Income Tax Application Rules, R.S.C. 1985 c. 2 (5th Supp.) as amended to the date hereof; (l) "Partnership" is the proposed general partnership of which the partners will be US LLC and Holdco; (m) "Partnership Agreement" means the General Partnership Agreement between Holdco and US LLC to form the Partnership; (n) XXXXXXXXXX; (o) "US" means the United States of America; (p) "US LLC" is the proposed, newly formed US limited liability corporation which will be formed in the State of XXXXXXXXXX as a wholly-owned subsidiary of Holdco; and (q) "US Parent" means XXXXXXXXXX a company incorporated under the laws of XXXXXXXXXX and a wholly-owned subsidiary of Holdco. ...

2006 Ruling 2005-0151051R3 F- Entente d'échelonnement de traitement Unedited CRA Tags 248(1) 8(1) Principales Questions: Dans une situation particulière où une société met en place un régime d'intéressement à l'intention de certains de ses employés, est-ce que: 1) le régime constituera une entente d'échelonnement du traitement; et 2) le régime constituera une convention de retraite. ... Le Régime ne constituera pas une convention de retraite au sens du paragraphe 248(1) de la Loi. ...

Selon l'alinéa 231(6)c) du REglement, le produit de disposition auquel l'acheteur peut avoir droit aux termes d'une convention ou d'un arrangement qui lui confEre le droit, conditionnel ou non, de disposer de sa part dans l'abri fiscal, autrement que par suite de son décEs, constitue un avantage. ... En effet, au cours d'une certaine période, l'acheteur a le droit aux termes d'une convention ou d'un arrangement de disposer du bien acquis et ce, pour un produit de disposition déterminé. ...

La FFCP émettra des parts de deux catégories présentant les caractéristiques suivantes: a) chaque part sera entièrement libérée et non susceptible d'appel de versement; b) chaque part constituera une part proportionnelle indivise d'intérêt variable dans une section de la fiducie, soit la part capital pour chaque part de la catégorie A et la part revenu pour chaque part de la catégorie B; c) chaque part entière conférera une voix et un vote à son détenteur à chaque assemblée des détenteurs de parts; d) les parts seront cessibles, sous réserve de la réglementation applicable en matière de valeurs mobilières et des formalités de cession décrites à la convention de FFCP; e) aucun certificat ne sera émis pour constater l'existence ou le nombre de parts détenues par un bénéficiaire. 6. ... Un contrat à terme, une option sur un contrat à terme ou une option acquis auprès d’une bourse canadienne ou conclus au Canada avec des personnes résidantes du Canada ne sont pas normalement considérés comme un bien étranger s’il ne s’agit pas d’une convention permettant d’acquérir un bien étranger au sens de l’alinéa 206(1)f) de la LIR. ...

XXXXXXXXXX the shareholders approved, among other items: (a) the creation of a new class of XXXXXXXXXX Shares and the necessary amendments to the rights of the existing classes of shares and the constrained shares provisions, and (b) amendments to the DRIP to extend the plan to holders of the XXXXXXXXXX Shares and to permit cash dividends (net of the appropriate amount of tax withheld under Part XIII, subject to any applicable Tax Convention, with respect to a shareholder who is not resident in Canada) paid in respect of each class of shares to be reinvested in additional shares of that class, or in certain circumstances, in shares of other classes. 11. ... XXXXXXXXXX Dividends designated by a non-resident participant for reinvestment under the DRIP will be reduced by the appropriate non-resident withholding tax under Part XIII, subject to any applicable tax convention. ...

Permanent Establishment It is essentially a question of fact, having regard to the definition in the applicable income tax convention or, if there is no applicable convention, Regulation 400(2), as to whether a corporation has a permanent establishment in respect of its international shipping business in the country in which it is resident. ...

Principal Issues: (i) Whether the foreign affiliate of the taxpayer is a resident of France for the purposes of Article 4 of the Canada-France Income Tax Convention; (ii) Whether XXXXXXXXXX; and (iii) Whether paragraph 5906(1)(a) and subparagraph (d)(i) of the definition of "exempt earnings" in subsection 5907 (1) of the Income Tax Regulations apply to the active business income earned XXXXXXXXXX by a branch of the foreign affiliate situated therein. ... Definitions In this letter the following terms have the meanings specified: (a) "Act" means the Income Tax Act R.S.C. 1985 c.1 (5th Supp.), as amended to the date hereof, and unless otherwise stated, every reference herein to a part, section, subsection, paragraph, subparagraph or clause is a reference to the relevant provisions of the Act; (b) "active business" has the meaning assigned by subsection 95(1) of the Act; (c) "Aco" means XXXXXXXXXX; (d) "Aco 2001 Ruling" means the advance income tax ruling issued by the CCRA to Aco on XXXXXXXXXX, 2001 (reference #2001-008991), as amended by a further letter from the CCRA to Aco dated XXXXXXXXXX, 2001 (reference #2001-010443); (e) "Bco" means XXXXXXXXXX; (f) "Canada-France Treaty" means the Canada-France Income and Capital Tax Convention, 1975, as amended to the date hereof; (g) "CBCA" means the Canada Business Corporations Act, R.S.C. 1985, c. ...

In addition, since the proposed transactions do not involve the application of any of the tax conventions Canada has with other countries, we cannot provide a ruling on the application of the tax conventions generally. ...

XXXXXXXXXX Parent is not resident in Canada and does not carry on business in Canada for purposes of the Act, Parent is incorporated under the laws of XXXXXXXXXX, and does not have a permanent establishment in Canada as defined under XXXXXXXXXX (the "Convention"). 2. ... XXXXXXXXXX subsidiary corporations of Parent ("Direct Parents"), which do not carry on business in Canada or have a permanent establishment in Canada as defined under XXXXXXXXXX the Convention, own all the outstanding common shares in Holdco. ...