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2010 Ruling 2009-0349141R3- Canada-United States Tax Convention Unedited CRA Tags Article XI and XXIX A(3) of the Canada-United States Tax Convention (1980); Subsection 18(6) of the Income Tax Act Principal Issues: 1) Whether interest arising in Canada and beneficially owned by a resident of the United States is, pursuant to Article XXIX A(3) and Article XI of the Convention, only taxable in the United States; 2) Whether subsection 18(6) applies to certain loans between related Canadian corporations Position: 1) Yes; 2) No Reasons: 1) The interest is income derived in connection with an active trade or business in the United States that is substantial in relation to the activity in Canada giving rise to the income; 2) Subsection 18(4) is not frustrated or circumvented XXXXXXXXXX 2009-034914 XXXXXXXXXX, 2010 Dear XXXXXXXXXX: Re: Advance Income Tax Ruling XXXXXXXXXX (collectively referred to as the "taxpayers") We are writing in response to your request dated XXXXXXXXXX for an advance income tax ruling on behalf of the above-noted taxpayers. ... In this letter, the following terms have the meanings specified below: "Act" means the Income Tax Act, R.S.C. 1985 c.1 (5th Supp.), as amended; "Canco" means XXXXXXXXXX, a corporation incorporated under the Canada Business Corporations Act; "Canadian Finco" means XXXXXXXXXX, a corporation incorporated under the Canada Business Corporations Act; "Canco Group" means Canco, Canadian Finco, Canadian Salesco and Canadian Treasury; "Canadian Salesco" means XXXXXXXXXX, a wholly-owned subsidiary of US Holdco; "Canadian Treasury" means XXXXXXXXXX, a corporation incorporated under the Canada Business Corporation Act; "CRA" means the Canada Revenue Agency; "Fifth Protocol" means the Fifth Protocol to the Canada-United States Tax Convention (1980); "Foreign Finco" means XXXXXXXXXX, a XXXXXXXXXX company and a wholly-owned subsidiary of Foreign Parent; "Foreign Holdco" means XXXXXXXXXX, a XXXXXXXXXX company and a wholly-owned subsidiary of Foreign Parent; "Foreign Parent" means XXXXXXXXXX, a XXXXXXXXXX public company; "Foreign Treasury" means XXXXXXXXXX, a XXXXXXXXXX company and a wholly-owned subsidiary of Foreign Parent; "FP Group" has the meaning described in paragraph 1 of this letter; "GPCo" means XXXXXXXXXX, a wholly-owned subsidiary of US Holdco; "non-resident" has the meaning assigned by subsection 248(1) of the Act; "Primary Loans" means Primary Loan 1, Primary Loan 2 and Primary Loan 3, as described in paragraph 33 of this letter; "related" has the meaning assigned in subsection 251(2) of the Act; "Secondary Loans" means the Secondary Loans 1, Secondary Loan 2 and Secondary Loans 3, as described in paragraph 33 of this letter; "taxable Canadian corporation" has the meaning assigned by subsection 89(1) of the Act; "Treaty" means the Canada-United States Tax Convention (1980); "US Group" means US Holdco and any of the corporations that are related to US Holdco and that carry on an active trade or business in the United States; "US Holdco" means XXXXXXXXXX, a wholly owned subsidiary of Foreign Parent; and "US Treasury LP" means XXXXXXXXXX, a limited partnership, as described in paragraphs 18 and 19 of this letter. ...

2012 Ruling 2011-0416821R3- Article XII of Canada-US Tax Convention Unedited CRA Tags 212(1)(d); Article XII- Canada-US Treaty Principal Issues: Whether certain payments from a Canadian payor to an arm's length US corporation are in respect of a franchise Position: No Reasons: This was a factual determination XXXXXXXXXX 2011-041682 XXXXXXXXXX XXXXXXXXXX, 2012 Dear XXXXXXXXXX: Re: Advance Income Tax Ruling XXXXXXXXXX This is in response to your XXXXXXXXXX request for an advance income tax ruling on behalf of the above named taxpayers. ... Definitions In this letter, the following terms have the meaning specified: (a) "Act" means the Income Tax Act, R.S.C. 1985, c.1 (5th Supplement) as amended to the date of this advance income tax ruling; (b) "Agreement" means the License and Distribution agreement to be entered into by Pubco, Parent and Canco; (c) "Canco" means XXXXXXXXXX; (d) "CRA" means the Canada Revenue Agency; (e) "Existing Product" means the XXXXXXXXXX product; (f) "Foreign Country" means the United States of America; (g) "Foreign Exchange" means the XXXXXXXXXX; (h) "New Product" means the XXXXXXXXXX product; (i) "non-resident" has the meaning assigned by subsection 248(1) of the Act; (j) "Parent" means XXXXXXXXXX; (k) "Province" means XXXXXXXXXX; (l) "Pubco" means XXXXXXXXXX; (m) "related persons" has the meaning assigned by subsection 251(2) of the Act; (n) "S Corporation" means a corporation that has elected to be taxed under Subchapter S of Chapter 1 of the Internal Revenue Code; (o) "State 1" means XXXXXXXXXX; (p) "State 2" means XXXXXXXXXX; (q) "subsidiary wholly-owned corporation" has the meaning assigned by subsection 248(1) of the Act; (r) "taxable Canadian corporation" has the meaning assigned by subsection 89(1) of the Act; (s) "Territory" means Canada; and (t) "Treaty" means the Convention between Canada and the United States of America with Respect to Taxes on Income and Capital signed on September 26, 1980 as Amended by Protocols signed on 14 June 1983, March 28, 1984, March 17, 1995, July 29, 1997 and September 21, 2007. ...

Tax Convention- Article IV(7)(b) Unedited CRA Tags 84(1); 212(2); 212(1)(b); Articles IV(7), X; XI; XXIX-A of the Treaty Principal Issues: 1) Whether Article IV(7)(b) of the Treaty applies to treat the deemed dividend and the interest paid by Canco (a fiscally transparent entity) as not being paid to a resident of the USA. 2) Whether the interest paid by Canco to the US resident will be subject to withholding under subsection 212(1)(b). ... Pubco is a non-resident of Canada and a resident of the U.S. for purposes of the Act and for the purposes of the Treaty; k) "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 to the date hereof; l) "U.S. ...

2010 Ruling 2009-0348181R3- Canada-US Tax Convention ("Treaty") Unedited CRA Tags Article XXIX A(3) of the Treaty Principal Issues: Whether interest paid by a Canadian corporation to a United States resident corporation qualifies for treaty benefits under Article XXIX A(3) of the Treaty Position: Yes Reasons: The interest income will be derived by a resident of the United States in connection with an active trade or business carried on in the United States that is substantial in relation to the activity in Canada that gives rise to the income XXXXXXXXXX 2009-034818 XXXXXXXXXX, 2010 Re: Advance Tax Ruling XXXXXXXXXX This is in reply to your letter dated XXXXXXXXXX in which you requested an advance tax ruling on behalf of the above named taxpayer. ... Definitions (a) "Agreement" means the agreement between Parent and Vendors executed on XXXXXXXXXX; (b)XXXXXXXXXX (c) "BCA" means the Business Corporations Act (XXXXXXXXXX); (d) "CAD" means Canadian dollars; (e) "CBCA" means the Canada Business Corporations Act; (f) "Canada Holdco I" means XXXXXXXXXX; (g) "Canopco" means XXXXXXXXXX; (h) "Canopco2" means XXXXXXXXXX; (i) "Canadian Bid Co" means XXXXXXXXXX; (j) "CRA" means the Canada Revenue Agency; (k) "Finco" means XXXXXXXXXX; (l) "Forco1" means XXXXXXXXXX; (m) "Forco2" means XXXXXXXXXX; (n) "For2 Bid Co" means XXXXXXXXXX; (o) "For2 Hold Co" means XXXXXXXXXX; (p) "Loan" means the loan from US Bid Co to Canadian Bid Co, as described in paragraph 31; (q) XXXXXXXXXX (r) "New Canopco" means the corporation formed by the amalgamation of Canadian Bid Co, Canada Holdco I and Canopco; (s) "Parent" means XXXXXXXXXX; (t) "Subco" means XXXXXXXXXX.; (u) "Subco2" means XXXXXXXXXX.; (v) "Target Companies" means the XXXXXXXXXX Group of companies consisting of Canopco, Forco1, Forco2 and USopco; (w) "taxable Canadian corporation" has the meaning assigned by subsection 89(1) of the Act; (x) "Treaty" means Canada-United States Tax Convention (1980), as amended; (y) "US Bid Co" means XXXXXXXXXX.; (z) "USD" means United States dollars; (aa) "US GP" means XXXXXXXXXX.; (bb) "USopco" means XXXXXXXXXX.; (cc) "US Vendor" means XXXXXXXXXX.; and (dd) "Vendors" mean collectively XXXXXXXXXX. ...

2009 Ruling 2009-0341681R3- Canada-US Tax Convention ("Treaty") Unedited CRA Tags 84(1); 212(2); 245; Articles IV(7) and X of the Treaty Principal Issues: 1) Whether a subsection 84(1) deemed dividend is a dividend within the meaning of Article X(3) of the Treaty; 2) Whether Article IV(7)(b) of the Treaty applies to treat the dividend as not being paid to or derived by a resident of the United States Position: 1) Yes; 2) No Reasons: 1) Definition of "dividends" in Article X(3) is broad enough to include a subsection 84(1) deemed dividend; 2) Article IV(7)(b) does not apply because the deemed dividend is subject to the same treatment under the taxation laws of the U.S. as it would be if the dividend payer were not fiscally transparent XXXXXXXXXX 2009-034168 XXXXXXXXXX, 2009 Dear XXXXXXXXXX: Re: Advance Income Tax Ruling XXXXXXXXXX (the "Taxpayers") This is in response to your XXXXXXXXXX request for an advance income tax ruling on behalf of the above-noted taxpayers. ... X" means XXXXXXXXXX; (j) "paid-up capital" has the meaning assigned by subsection 89(1) of the Act; (k) "Partnership" means XXXXXXXXXX (l) "Province" means the Province of XXXXXXXXXX; (m) "S Corp" means XXXXXXXXXX.; (n) "related persons" has the meaning assigned by subsection 251(2) of the Act; (o) "taxable Canadian corporation" has the meaning assigned by subsection 89(1) of the Act; (p) "taxation year" has the meaning assigned by subsection 249(1) of the Act; (q) "Treaty" means the Convention Between Canada and the United States of America With Respect to Taxes on Income and Capital Signed on September 26, 1980 as Amended by the Protocols Signed on June 14, 1983, March 28, 1984, March 17, 1995, July 29, 1997 and September 21, 2007; and (r) "United States" means the United States of America. ...

Tax Convention ("Treaty") Unedited CRA Tags 84(1); 212(2); Articles IV(7), X and XII of the Treaty Principal Issues: 1) Whether a subsection 84(1) deemed dividend is a dividend for the purposes of Article X of the Treaty; 2) Whether Article IV(7)(b) of the Treaty applies to treat a subsection 84(1) deemed dividend as not being paid to or derived by a resident of the United States; 3) Whether Article IV(7)(b) of the Treaty applies to treat certain royalty payments as not being paid to or derived by a resident of the United States Position: 1) Yes; 2) No; 3) No Reasons: 1) The definition "dividends" in Article X(3) of the Treaty is broad enough to include a subsection 84(1) deemed dividend; 2) Article IV(7)(b) does not apply because the deemed dividend is subject to the same treatment under the taxation laws of the United States as it would be if the dividend payer were not fiscally transparent; 3) Article IV(7)(b) does not apply because the royalties are subject to the same treatment under the taxation laws of the United States as they would be if the royalty payer were not fiscally transparent. ... In this letter, the following terms have the meanings specified below: "Act" means the Income Tax Act, R.S.C. 1985 (5th Supp.) c.1, as amended; "Agreement" means the XXXXXXXXXX License Agreement, as described in Paragraph 10; "Canco" means XXXXXXXXXX, an unlimited liability company under the Companies Act; "Code" means the Internal Revenue Code of 1986 (United States), as amended; "Companies Act" means the Companies Act (XXXXXXXXXX); "Merger" has the meaning ascribed to in Paragraph 2; "Paragraph" means a numbered paragraph in this letter; "PUC Increase" has the meaning ascribed to in Paragraph 14; "PUC Reduction" has the meaning ascribed to in Paragraph 14; "Qualifying Person" has the meaning ascribed to in Article XXIX-A(2) of the Treaty; "Royalty" means the fee payable under the Agreement, as described in Paragraph 10; "taxable Canadian corporation" has the meaning assigned by subsection 89(1) of the Act; "Treaty" means the Convention Between Canada and the United States of America With Respect to Taxes on Income and Capital Signed on September 26, 1980 as Amended by the Protocols Signed on June 14, 1983, March 28, 1984, March 17, 1995, July 29, 1997 and September 21, 2007; "US Holdings" means XXXXXXXXXX; "US Parent" means XXXXXXXXXX.; and "US Subco" means XXXXXXXXXX. ...

D) Canada-Netherlands Income Tax Convention ("Canada-Netherlands Treaty") The Canada-Netherlands Treaty contains Article 23- Offshore Activities. ... Income Tax Convention ("Canada-U.K. Treaty") The Canada-U.K. ... Tax Convention ("Canada-U.S. Treaty") In XXXXXXXXXX, the Fourth Protocol to the Canada-U.S. ...

Income Tax Convention (1980) (the "U.S. Convention")? Our Comments Your letter describes factual situations involving a specific taxpayer. ... German Convention The relevant part of Article 11 of the German Convention provides: 3. ... Convention The relevant part of paragraph 3 of Article 11 of the U.S. ...

Conventions fiscales Accord entre le Canada et la République fédérale d'Allemagne En vertu de l'alinéa 3(c) de l'article 18 de cette convention, les prestations payées en vertu de la législation sur la sécurité sociale dans un État contractant (Allemagne) à un résident de l'autre État contractant (Canada) sont imposables dans cet autre État (Canada). ... La Reine, [1998] 4 CTC 2232 comme étant des paiements de sécurité sociale pour les fins du paragraphe 2 de l'article 18 de la convention fiscale intervenue entre le Canada et la Belgique. ... Il est donc pertinent de le considérer comme tel pour les fins des dispositions de la convention fiscale conclue entre la Canada et la France. ...

Canada- Brazil Income Tax Convention (the "Convention") This issue is whether paragraph 4 of Article 22 of the Canada- Brazil Income Tax Convention (the "Convention") allows tax-free dividends to be paid without a requirement for those dividends to be paid from exempt surplus as calculated under Canadian rules. ... There is nothing in the context in which the words "profits..... from carrying on an active business" are used in paragraph 4 of Article 22 of the Convention that requires a different interpretation than what we would use for the purpose of the Act. Therefore, in accordance with paragraph 2 of Article 3 of the Convention and section 3 of the Income Tax Conventions Interpretations Act, the words "profits...... derived from carrying on an active business" should have the same meaning for the purpose of the Convention as they do for the purposes of the Act. 3. ...