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In a short decision, the Federal Court of Appeal dismissed the Crown's appeal in MIL (Investments) on the basis that it was unable to find an object or purpose of the exempting provision of the Convention whose abuse would justify a departure from the plain meaning of the words of the provision. ... Domestic law provisions to prevent tax treaty abuse are endorsed by both the OECD and the United Nations (the "UN"); [FN: For example, paragraph 9.4 of the Commentary to Article 1 of the OECD Model Convention states that countries do not have to grant the benefit of a double taxation convention where arrangements that constitute an abuse of the convention have been entered into and any such denial of treaty benefits may be achieved under either a domestic law or treaty-based approach.] ... The following types of rules are generally described in the Commentary to Article 1 of the OECD Model Convention: The look-through approach disallows treaty benefits to a company owned or controlled, directly or indirectly, by persons who are not residents of a contracting state; The subject-to-tax approach provides that treaty benefits in the country of source are granted only if the income in question is subject to tax in the country of residence; and The channel approach disallows treaty benefits in cases where an intermediary company receives what would be treaty-protected income if more than 50% of that income is paid to satisfy claims (deductible amounts) of a person not resident in the country of the intermediary company and who has, directly or indirectly, a substantial interest in (or exercises management or control over) the company. ...

Organizations- Under Article XXI of the Canada- United States Tax Convention 31March 2013 ...

OECD Discussion Draft, Working Party 1 "OECD Model Tax Convention: Tax Treatment of Termination Payments, " 25 June 2013: Recommended additions to the Commentary on Article 15 include the following: 2.5 Vacation pay/sick days. ...