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Convention Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department. ... Consequently, the Business Profits Article of the Convention applies rather than the Dividend or Interest Articles. ... Income Tax Convention (the "Convention") would apply to restrict the U.S.'s right to impose a withholding tax of 39.6% on distributions made by U.S. limited partnerships to foreign partners including those who are residents of Canada. ...

Leung February 10, 2004 Dear XXXXXXXXXX: Re: Section 119 of the Income Tax Act (the "Act") and Paragraph 10(6)(a) of the Income Tax Application Rules ("ITAR") We are writing in reply to your facsimile correspondence of August 1, 2003 ("Letter") in which you requested our view on the interaction of section 119 of the Act and subsection 10(6) of ITAR and whether the reduced treaty rate (for example, the reduced rate on dividends pursuant to paragraph 2(b) of Article X of the Canada-United States Income Tax Convention (the "Convention")) would apply to the calculation of the credit described in paragraph 119(b) of the Act. ... " Where the conditions described in paragraph 2(b) of Article X of the Convention are met such that the tax so charged shall not exceed 15% of the gross amount of the dividend, paragraph 10(6)(a) of ITAR would apply such that any reference in Part XIII of the Act to a rate in excess of 15% shall be read as a reference to 15%. ... Based on the interaction of paragraph 10(6)(a) of ITAR and the fact that the implementing Act that gives the Convention the force of law in Canada provides that in the event of a conflict between the Convention and the Act, the Convention prevails, the tax payable under Part XIII in respect of dividends received or dividends deemed to have been paid as referred to in paragraph 119(b) of the Act is therefore the tax payable at the Convention specified rate of 15% of the gross amount of the dividends and that tax payable is the amount entered into the calculation of the credit under paragraph 119(b) of the Act. ...

HoldcoA and HoldcoB are persons as defined in paragraph 1(a) of Article 3 of the OECD Model Tax Convention. ... Country A has a tax convention with respect to income and capital (the "Treaty") with Canada. ... Income Tax Convention (1980) (the "Convention"). HoldcoA and HoldcoB would not qualify for the reduced rate of 5% set out in paragraph 2(a) of Article X of the Treaty. ...

Cependant, aux fins de l'application de la Loi, dans une situation comme la vôtre il s'agit de déterminer si une convention constitue, en substance, une convention de location ou une disposition aux fins de la Loi. La question de savoir si une convention constitue une convention de location ou une disposition est une question de faits. ... Lorsqu'une convention constitue une convention de location selon le C.c., celle-ci sera habituellement traitée comme une convention de location aux fins de la Loi pourvu que la convention est ce qu'elle prétend être, que les droits légaux des parties en vertu de la convention sont ceux d'un bailleur et d'un locataire et que la transaction n'est pas une disposition aux fins de la Loi. ...

You indicate that RRSP income is considered to be pension income udner the Convention according to Information Circular 76-12R2. ... In Article II of the Protocol to the Convention, it is stated that the term “pensions” does not include lump sum payments out of a pension plan”. ... In our view, the payments in question are not entitled to the protection of Article 20 of the Convention since paragaph 2 of Article 3 of this Convention provides that: “Any term not otherwise defined shall, unelss the context otherwise requries, have the meaning which it has under the laws of that Contracting State relation to the taxes which are the subject of the Convention”. ...

Tax Convention (the "Convention") and paragraph 254(a) of the Act. ... The particular provisions would be Article VIA of the Convention and paragraph 7 of the Convention Protocol. ... The old convention limited taxation of periodic pension payments, it did not limit the taxation of any other payments out of a "pension" plan nor did it expand upon the meaning of pensions to identify specific sources of the periodic payments as does the present Convention. ...

Income Tax Convention (the "Convention") provides that remuneration paid by the government of Canada to a citizen of that state in respect of services rendered in the discharge of functions of a governmental nature to Canada shall be taxable only in Canada and vice-versa in case of a citizen of the United States. While paragraph 2 of Article XXIX of the Convention preserves the right of the United States to tax its citizens as if there was no Convention, paragraph 3 of that Article provides that paragraph 2 does not apply to certain articles of the Convention, including Article XIX. ... Income Tax Convention and therefore the determination of the liability for Canadian tax for locally engaged individuals in other tax treaty countries, who have dual citizenship, may produce a different result depending on the wording of the particular tax agreement or convention. ...

Income Tax Convention Art. VI SUMMARY: Canada- United Kingdom treaty—ITUK-Art. ... Harris XXXXXXXXXX 5-980220 February 18, 1998 Dear Sir: Re: Article VI of the Canada- United Kingdom Income Tax Convention This is in response to your letter of January 29, 1998 wherein you requested our interpretation of the application of Article VI of the Canada- United Kingdom Income Tax Convention (the "Convention") to a situation where a resident of Canada owns real property situated in the United Kingdom from which the Canadian resident derives rental income. It is your interpretation that pursuant to Article VI of the Convention, this rental income may be subject to tax in the U.K. but not in Canada. ...

You have asked us for our views on the correct interpretation of the classification of U.I. benefits for purposes of the 1980 Canada-United States Income Tax Convention (the "Convention") and resulting applicable withholding rates on the benefits paid to non-residents. ... " of Canada as stated in the Convention, withholding tax would be reduced to NIL. Alternatively, if U.I. benefits were not included in any of the provisions of Article XVIII of the Convention you suggest that it may be appropriate to apply a twenty-five per cent (25%) rate of withholding tax pursuant to Part XIII of the Income Tax Act (the "Act") and Article XXII of the Convention. ...

Harding Dear Sirs: This is in reply to your letter of December 19, 1985, concerning the Canada-Brazil Income Tax Convention (Convention). ... Accordingly, paragraph 3 of Article 22 of the Convention does not apply in this situation. ... It is our view that the above terms are not defined in the Convention and therefore have the meaning which they have under domestic law in accordance with paragraph 2 of Article 3 of the Convention. ...