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At the opening of the hearing, counsel for the respondent broadened that assumption to include the assumption that, if the appellant was not resident in Canada, he had a permanent establishment in this country, a fact which excludes him from the benefits of the Canada-US Reciprocal Tax Convention. 3 First of all I would like to say a word about the said Convention, so that my approach to such Conventions, should the matter go further, will be on the record. ... Where a tax convention is involved, however, the situation is different and a liberal interpretation is usual, in the interests of the comity of nations. Tax conventions are negotiated primarily to remedy a subject's tax position by the avoidance of double taxation rather than to make it more burdensome. ...

Conventions of this sort are typically attended by a large number of GM head office personnel, including several of the most senior executives. ... The Appellant, quite understandably, viewed this request as an invitation he could not refuse, and he and his wife therefore attended and took part in the convention. [6] The evidence before me as to the exact nature of the agenda for this convention was scant indeed. ... Here the predominant purpose of the Appellant’s attendance at the convention, and that of his wife, was to further the employer’s business. ...

Conventions of this sort are typically attended by a large number of GM head office personnel, including several of the most senior executives. ... The evidence before me as to the exact nature of the agenda for this convention was scant indeed. ... Here the predominant purpose of the Appellant’s attendance at the convention, and that of his wife, was to further the employer’s business. ...

As well, there was agreement on the fact that the appellant received the following amounts in 1996: ORGANIZATION NATURE OF AMOUNT AMOUNT Government of Canada pension $ 4,764.42 Régie des Rentes du Québec survivor's pension $ 6,345.24 Régie des Rentes du Québec pension $ 1,019.76 Hydro-Québec pension $22,379.00 Royal Bank interest $ 170.13 Royal Bank interest $ 3,503.36 [6] No source deductions were made when these amounts were paid to the appellant. [7] The assessment totalling $6,756.55 was made on the basis that the applicable rates and resulting tax were as follows, for the various amounts received: AMOUNT RATE TAX Interest $ 3,673.49 10% $ 367.35 Hydro-Québec pension $22,379.00 15% $3,356.85 Government of Canada pension and pensions from Régime des $12,129.42 25% $3,032.35 Rentes du Québec TOTAL $6,756.55 [8] The 10 percent rate on interest results from the effect of Article XI of the 1980 Tax Convention between Canada and the United States ("the Convention") as applicable from January 1, 1996. [9] The 15 percent rate on the pension received from Hydro-Québec results from the effect of paragraphs 2(a) and 3 of Article XVIII of the Convention, as applicable from January 1, 1996, according to the third Protocol to that agreement effective on November 9, 1995. [10] The 25 percent rate on benefits paid under social security legislation (Government of Canada and Régime des Rentes du Québec) results from the operation of s. 212(1)(h) of the Act, as applicable from January 1, 1996, and the exclusion set out in paragraphs 3 and 5 of Article XVIII of the Convention, as amended by the third Protocol. [11] Counsel for the respondent admitted that the coming into effect of the fourth Protocol to the Convention on December 16, 1997 amended Article XVIII of the Convention so that benefits under social security legislation would only be taxed in the recipient's country of residence, not in the country in which the source of the benefits was located. ...

The assessment totalling $6,756.55 was made on the basis that the applicable rates and resulting tax were as follows, for the various amounts received: AMOUNT RATE TAX Interest $ 3,673.49 10% $ 367.35 Hydro-Québec pension $22,379.00 15% $3,356.85 Government of Canada pension and pensions from Régime des Rentes du Québec $12,129.42 25% $3,032.35 TOTAL $6,756.55 The 10 percent rate on interest results from the effect of Article XI of the 1980 Tax Convention between Canada and the United States (“the Convention”) as applicable from January 1, 1996. The 15 percent rate on the pension received from Hydro-Québec results from the effect of paragraphs 2(a) and 3 of Article XVIII of the Convention, as applicable from January 1, 1996, according to the third Protocol to that agreement effective on November 9, 1995. ... Counsel for the respondent admitted that the coming into effect of the fourth Protocol to the Convention on December 16, 1997 amended Article XVIII of the Convention so that benefits under social security legislation would only be taxed in the recipient’s country of residence, not in the coun- try in which the source of the benefits was located. ...

The appellant attended a convention trip to Greece under the auspices of Hupp (Canada) Limited (hereinafter referred to as “Hupp”). ... The appellant attended the convention at the request of Frontier and as one of its employees. ... He was simply requested to attend the convention by the President and General Manager of the company for business reasons, which included goodwill and public relations. ...

While the purpose of the Convention is to avoid double taxation and, as counsel for the appellant argued, while the Convention is to be reciprocal, there will still be provisions of United States and Canadian law that will yield different results in their application for Canadian and United States' taxpayers. ... Thus, perfect symmetry will not be achieved by the 1980 Convention. [3]      While the Technical Explanation of the 1980 Convention refers to "total gain", this phrase cannot be read in isolation. ... The 1980 Convention provides for either valuing property as of December 31, 1984, i.e. ...

Succinctly stated, the issue to be decided is whether a lump sum payment received by the appellant taxpayer, an American citizen and resident of Canada, is exempt from taxation in Canada by reason of the Canada-United States Income Tax Convention (1980), as amended (the “Convention”). ... Treasury Department and released on 26 April 1984, four years after the Convention was signed. ... However, the purposes of the Convention are not so limited, even though the preamble to the Convention goes no further. ...

This makes the meaning of this subsection clearer and closer to what is the purpose of all such conventions. ... The Vienna Convention on the Law of Treaties, to which both Canada and the Netherlands are parties, contains the general rules of interpretation of international conventions. ... The amendments made in 1962 and 1965 to the Canada Income Tax Act (supra) contravene the provisions of the Canada-Netherlands Income Tax convention and are therefore ineffective to abrogate the provisions of Article IV(5) of such convention. ...

The estate claimed exemption from taxation pursuant to Article VIII of the Canada-US Tax Convention. ... There are twenty-six concluded and ten proposed tax conventions, treaties or agreements between Canada and other nations of the world. ... Article 31 of the Vienna Convention on the Law of Treaties (1969) to which Canada subscribed governs the general rule of interpretation to be applied. ...