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Non-resident conventions Summary of Question How does a taxpayer determine the number of non- resident attendees to attend a foreign convention if it has not yet occurred? ... Section 189.2 deems certain supplies by a sponsor of a foreign convention, including admissions to the foreign convention, to have been made otherwise than in the course of a commercial activity of the sponsor. ... In planning for this year’s convention in Calgary, Alberta, it would not be reasonable to just use the attendance from the Australian conference to determine whether the convention in Calgary will be a foreign convention or not, considering the attendance data for the Seattle convention and the geographical distances involved. ...

Official response 6 October 2017 APFF Roundtable Q. 11, 2017-0709091C6 F- Transitional rules- Class 14.1 Q.12 Two-convention limitation where business expense The two-convention limitation in s. 20(10) applies only to capital expenditures. Are expense of attending conventions which were incurred for earning income from a business not subject to this limitation? ... Historically, the CRA's position with respect to convention expenses is that such expenditures are generally capital expenditures to which paragraph 18(1)(b) applies. ...

Paragraph 189.2(a) of the ETA provides that supplies of admissions to a foreign convention by the sponsor of the convention are deemed not to have been made in the course of a commercial activity. ... Q.8 Pursuant to section 252.3 of the ETA, non-resident non-GST/HST-registered exhibitors that rent booth space can apply for a rebate of the GST/HST paid on related convention supplies, including accommodation, by filing a rebate claim with the CRA, using form GST386, Rebate Application for Foreign Conventions (see Booklet RC4160, Rebate for Tour Packages, Foreign Conventions, and Non-Resident Exhibitor Purchases for more information). ... Although, if the sponsor of the foreign convention included the accommodation in the supply of the admission to the convention, no tax would apply to the accommodation made available to the attendees, and the sponsor would be eligible for a rebate of the tax paid to the hotel for this related convention supply. ...

Convention Summary of Preliminary Response Official response Q.4- S. 78 thin cap effect Summary of Preliminary Response- Part a Summary of Preliminary Response- Part b Official response Q.5- FX gain on Cdn$ refund of USD reporter Summary of Preliminary Response Official response Q.6- Return filing obligation of non-resident partners Summary of Preliminary Response Official response Q.7 – S. 246(1)(a) benefit to non-resident Summary of Preliminary Response Official response Q.8 – Active trade or business of 3rd-country FA (Art. ... In the following examples, will a shared workspace in Canada used by a person that is a non-resident of Canada that is resident of the U.S. and carrying on business in Canada, be considered to be a permanent establishment (“PE”) of the U.S. resident person in Canada, assuming Articles V(5) and V(9) of the Canada-US Tax Convention (the “US Treaty”) do not apply? ... Convention A recent CRA advance tax ruling (2016-0664041R3) considered a debt which included both periodic non-participating interest payments, as well as the possibility of future additional payments (the “Additional Amount(s)”) that were contingent on the index price of a particular commodity. ...

Article XXIX-A(3) of the Canada-US Tax Convention: meaning of “substantial” Preliminary Question Question From Official Response Notes from Presentation CRA Response Written Response Q8. ... Article XXIX-A(3) of the Canada-US Tax Convention: meaning of “substantial” Preliminary Question In the context of the active trade or business test in paragraph 3 of Article XXIX-A of the Canada–US tax Convention (the LOB Article), in what circumstances would the CRA consider the US business to be “substantial” in relation to the Canadian business? ...

No relief would be provided under an international tax treaty, by virtue of the overriding provision of section 4.3 of the Income Tax Conventions Interpretation Act. ... A “non-qualifying country” is a country or other jurisdiction with which Canada does not have a tax treaty (including one that has been signed but is not yet in effect), one for which the Convention on Mutual Administrative Assistance in Tax Matters? ... Update on FATCA Information Exchange Articles 2 and 3 of the Agreement between the Government of Canada and the Government ofthe United States of America to Improve International Tax Compliance through Enhanced Exchange of Information under the Convention between Canada and the United States ofAmerica with Respect to Taxes on Income and on Capital (the “IGA”) sets out the timing of when information must be provided by a Canadian Financial Institution. ...

Since the SMLLC is not liable for U.S. income tax, the SMLLC is not a resident of the U.S. for purposes of applying the Canada-US Tax Convention (the “Convention”). ... Does the Convention provide relief from double taxation in the circumstances described? ... However, paragraph 5 of Article XXIX of the Convention does not apply automatically. ...

Tax Convention (“Convention”), however, business profits of a corporation resident in Canada that does not have a permanent establishment in the U.S. shall be taxable only in Canada. Will the CRA agree to accept requests for competent authority relief under Article XXVI of the Convention on the basis that the taxes imposed under the GILTI rules may be in violation of Article VII of the Convention? ... XXIX(2) the Convention cannot affect the taxation by the US of its own residents, except to the extent provided in Para. ...

Official response 21 November 2017 CTF Roundtable Q. 7, 2017-0724261C6- CRA Update Q.8 – MLI “principal purpose test” On June 7, 2017, Canada signed the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting, commonly referred to as the Multilateral Instrument (“MLI”). ... S. 4.1 of the Income Tax Conventions Interpretation Act states that the GAAR applies to any benefit provided under a tax treaty. ... Paragraph 9 of new Article 29 of the draft 2017 OECD Model Tax Convention (released July 11, 2017) contains the bilateral “principal purpose test”, which was developed under BEPS Action 6, and is virtually identical to the PPT in Article 7(1) of the MLI. ...

The underlying fact pattern of the request involved the payment of a dividend by a Canadian corporation (“Canco”) to a corporation residing in another jurisdiction (“NRCo”) with which Canada has a tax treaty (“Convention”). ... Canco requested confirmation that the Convention would apply to reduce the Canadian withholding tax rate of 25%, as provided in subsection 212(2), to a 5% withholding tax rate under the Convention, notwithstanding the MLI. ... That decision involved the potential application of the GAAR to a benefit claimed by the taxpayer under the Canada-Luxembourg Tax Convention. ...