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R.) [1997] 3 C.T.C. 435 (FCA)-- summary under Article 13 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 13 period before 1972 excluded Given that "the ordinary meaning of 'gain' for the purposes of Article XIII of the [Canada-U.S.] Convention is the gain which is subject to tax " (p. 5454) the proration of gain under paragraph 9 of Article XIII, was required to be calculated by reference to the period of time that the property in question (a cottage owned by the taxpayer and his previously-deceased wife since 1967) had been held subsequent to December 31, 1971 (the date on which the capital gains became subject to tax) rather than during the whole period of ownership. ...

.)-- summary under Article 3 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 3 "enterprise" includes an isolated adventure In January and May 1984 the taxpayer, who was a resident of Switzerland, paid $150,000 to acquire six units in the Energy Research Group Unit Trust, in November 1984 he sold his six units to Energy Research Group Australia Ltd. for $300,000 to be satisfied by the issuance to him of 600,000 ordinary shares of that company, and in 1985, following a listing of the shares on the Australian Stock Exchange, he sold 252,000 of his shares for $566,307. The majority found that the taxpayer's activities constituted an "enterprise" for purposes of Article 7 of the Australia-Switzerland Convention regardless whether they constitued an isolated adventure or the recurring conduct of a business. ...

Canada, 2019 FCA 7-- summary under Article 18 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 18 Columbia-source government pension was not exempt from Canadian tax The taxpayer, who was a former Columbia government official, commenced receiving a pension from Columbia after he became a Canadian resident. ... In confirming the assessment, Gauthier JA stated (at para. 5): The wording of Article 17(1) of the Convention is clear in entitling the state of residence to tax pension income arising in another state, and Article 17(1) applies even where the pension is on account of government service pursuant to Article 18(1)(a). ...

Commissioner of Income Tax (International Taxation), ITA 621/2017, 21 December 2018 (High Court of Delhi)-- summary under Article 7 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 7 portion of profits attributable to marketing estimated at 26% Various non-resident General Electric companies employed non-resident employees (the “expatriates”) in an office in India to secure customers and negotiate contracts with them. ... Convention. Bhat J accepted a finding below that, in the absence of any evidence of the profits generated from the sales in India, they should be estimated at 10% of such sales, and that 26% of this profit was attributable to the operations carried out by the PE in India. ...

The King, 2024 TCC 153-- summary under Article 15 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 15 US baseball players were taxable only on their income generated in playing in Canada Regarding the taxation of US athletes with employment income earned 40% in Canada and 60% in the US, Gagnon J found that pursuant to the “basic” rules in ITA ss. 2(3) and 4(1)(b) it was necessary to determine their income earned in Canada through the exercise in part of their employment duties there, before applying the income computation rules in inter alia s. 6 and under the RCA rules including the exclusion for RCA contributions pursuant to s. 6(1)(a)(ii) in determining their taxable income earned in Canada. He further stated (at para. 72): The foregoing is also consistent with the Canada-United States Convention, which provides that Canada can only tax salary, wages, remuneration derived by a resident of the United States for employment services provided in Canada, if the employment is exercised in Canada [citing Art. ...

.)-- summary under Article 4 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 4 reverse hybrid partnership The appellant ("RCF") was a Caymans limited partnership, with more than 97% of its capital held by a diversified group of US residents, principally funds and institutions. ... Article 1 of the Australia-US Convention provided that the Convention applied only to persons (defined to include partnerships) who were residents of one or both of the Contracting States; and Article 4 provided that a person is a US resident if the person is a US corporation "or any other person…resident in the United States for purpose of its tax…. ...

., 2020 FCA 43, aff'd 2021 SCC 49-- summary under Article 13 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 13 Treaty shopping was not an abuse A Blackstone LP and a U.S. shale company transferred their investment in a Canadian subsidiary (Alta Canada), that was to develop a shale formation in northern B.C., to a Luxembourg s.à r.l (Alta Luxembourg – which, in turn, they held through an Alberta partnership). ... Webb JA rejected the particular Crown arguments in this regard-- that the object, spirit and purpose of Art. 13(4) required that: Alta Luxembourg be an “investor” (he stated, at para. 52, that “There is nothing to suggest that the underlying rationale for the exemption is that it would only be available to a resident of Luxembourg who invests in the particular corporation ….”) there be a potential to realize income in Luxembourg, whereas here the gain was offset by variable interest payable by Alta Luxembourg to the Alberta partnership (he stated, at para. 62, “There is no basis to find that the rationale for the definition of ‘resident’ would suggest that any criteria other than the criteria included in the definition of resident in Article 4, should be used ….”) the exemption be accessed only by persons who have some commercial or economic ties to Luxembourg (he stated, at para. 65, that “There is no distinction in the Luxembourg Convention between residents with strong economic or commercial ties and those with weak or no commercial or economic ties.”) He concluded (at para. 80): I agree with … MIL … that the object, spirit and purpose of the relevant provisions of the Luxembourg Convention is reflected in the words as chosen by Canada and Luxembourg. ...

.-- summary under Article 14 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 14 The taxpayer, who was an engineer resident in the United States, was hired by a U.S. corporation ("OSG") to provide services to a Canadian oil and gas company ("Pan Canadian") pursuant to a master services agreement between OSG and Pan Canadian. ... Convention notwithstanding that the taxpayer spent almost a year working out of the offices of Pan Canadian, Bowie TCJ. noted that the taxpayer had no control over the premises in which he worked (they were available to him only for the purpose of the contract and his access to the building was restricted to business hours) and he was not identified with the premises in any way. ...

The Queen, 2012 DTC 1100 [at at 2966], 2012 TCC 57-- summary under Article 12 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 12 The taxpayer had previously paid royalties under a licence agreement with an affiliated Netherlands corporation ("VIBV"). ... The taxpayer withheld Part XIII tax at the Treaty-reduced rate of 10% on the royalty fees paid to VHBV on the basis that VHBV was the "beneficial owner" of the royalties under Article 12 of the Canada-Netherlands Convention. ...

The Queen, 2012 DTC 1052 [at at 2745], 2012 TCC 3, aff'd 2013 DTC 5118 [at 6147], 2013 FCA 160-- summary under Article 24 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 24 no double taxation engaging Art.2(a) of U.S. ... XXIV, para. 2(a) of the Canada-US Convention, as the US income taxes were paid on US source income that was not taxed in Canada, so that relief under that paragraph was not available (para. 81). ...