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., the principal purpose test) and those of the Income Tax Convention Interpretation Act, the latter (the “ITCIA”) will prevail. S. 4.1 of the ITCIA provides that “notwithstanding the provisions of a Convention … the GAAR, applies to any benefit provided under the Convention.” The intention is that if the PPT applies, there will be no tax benefit under the Convention, to which the GAAR could apply. ...

Halifax Round Table, February 1994, Q. 5-- summary under Article 24 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 24 As paragraph 1 of Article 24 of the Canada-U.S. Convention is subject to paragraphs 4, 5 and 6, and these paragraphs are not subject to U.S. domestic tax law, the credit to be allowed by the U.S. under the Convention on the Canadian-source investment income earned by a U.S. citizen resident in Canada should not be affected by the 90% limitation on the U.S. foreign tax credit for AMT purposes. ...

1996 Corporate Management Tax Conference Tax Conference Round Table Q. 21-- summary under Article 21 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 21 In the context of Article XXI of the Canada-U.S. Convention, "related person" has the meaning assigned in the Act. "Where a person is a member of a partnership, the Department will look through to the members in determining whether a particular member is related to the person from which the income is derived and whether paragraphs one or two of Article XXI of the Convention are applicable in respect of that member. ...

14 January 1999 No. 981253-- summary under Article 5 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 5 In commenting on Article 5 para. 3 of the Netherlands and German Conventions, which stated that "a building site or a construction or installation project constitutes a permanent establishment only if it lasts more than twelve months", the Directorate stated: "The placing of equipment in a building for use would meet the definition of installation for the purposes of paragraphs 3 of Article 5 of the Convention. ...

Income Tax Technical News, No. 23, 18 June 2002-- summary under Article 12 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 12 As Canada has removed its observation on Article 12 of the OECD Model Convention, CCRA generally will no longer view payments by a user of computer software pursuant to a contract that requires the source code or program to be kept confidential, as payments for the use of a secret formula and process and, thus, as constituting royalties. However, CCRA will view such payments as royalties within the definition of royalty if the particular Convention refers to "payments... for the use of, or the right to use... other intangible property. ...

")-- summary under Article 18 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 18 "Payments from an RCA as that term is defined in subsection 248(1) of the Income Tax Act, would qualify as 'pensions' for purposes of the convention". However, whether such payments would be eligible for the reduced rate of 15% would depend on whether they qualified as "periodic pension payments" as defined in s. 5 of the Income Tax Conventions Interpretations Act. ...

27 February 1990 Memorandum (July 1990 Access Letter, ¶1335)-- summary under Article 13 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 13 The Canada-U.S. Income Tax Convention would have the effect of exempting a U.S. resident from AMT with respect to capital gains. ...

.- Q.3-- summary under Article 21 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 21 a U.S. pension trust or charitable trust is entitled to the exemption provided in paragraph 2 of Article XXI of the Canada-U.S. Income Tax Convention (1980). ...

Income Tax Technical News, No. 4, 20 February 1995-- summary under Article 13 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 13 When the pro rata method in Article XIII, para. 9 of the U.S. Convention is used to reduce the amount of the capital gain, the months before 1972 are never relevant in determining "the amount of the gain which is liable to tax" in Canada. ...

.- Q.5-- summary under Article 18 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 18 If a Canadian resident is permitted under the Code to roll a lump sum payment received out of a U.S. pension fund into an IRA, a deduction in Canada will be permitted pursuant to s. 110(1)(f) to recognize the deferral permitted under Article XVIII of the U.S. Convention. ...