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22 December 2021 External T.I. 2021-0878661E5- Canadian tax on lump sum RRSP payments-- summary under Article 18 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 18 lump sum RRSP payments to a New Zealand resident are subject to Part XIII tax at a 25% rate Regarding the Canadian withholding tax rate applicable to lump sum payments from a Canadian registered retirement savings plan (“RRSP”) to a resident of New Zealand, the questioner noted that IC76-12R6 as it then read stated, in Appendix C, that a lump sum RRSP payment to a resident of New Zealand was subject to a 15% Canadian withholding tax. ...

11 April 2023 Internal T.I. 2023-0964101I7- Tax issues for cross-border employees-- summary under Article 8 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 8 contributions to 401(k) plan not deductible to the extent the duties of employment were performed from a Canadian home office Regarding the deductibility of a contribution made to a 401(k) plan by a cross-border employee (with a hybrid work arrangement) who exercises a portion of the duties of employment from Canada, the Directorate referenced the rule in Art. ...

6 April 2023 Internal T.I. 2022-0929731I7- Articles 18(2) and (3) of the Canada-Italy Treaty-- summary under Article 18 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 18 CPP and OAS payments treated as pensions and social security payments under the Canada-Italy Treaty Regarding the receipt by an individual resident in Italy of periodic Canada Pension Plan (“CPP”) and Old Age Security (“OAS”) benefit payments, the Directorate found that Art. 18(2) of the Canada-Italy Treaty limits the tax on Canadian-source pension income (including CPP) to the lesser of 15% of the total such income exceeding $12,000 and the amount of tax (referred to as the “as-if-resident” or “AIR” amount) that a resident of Canada would pay on that income. ...

2023 Ruling 2022-0958521R3- foreign absorptive mergers-- summary under Article 13 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 13 disposition of shares of companies resident in third countries and which were taxable Canadian property was exempted under XIII(4) of the Canada-US Treaty After giving effect to some preliminary transactions, a U.S. corporation which was a qualifying person for purposes of the Canada-US Treaty (the “Treaty”) wholly-owned four stacked corporations in Country 1. ...

2022 Ruling 2022-0929431R3 F- Entity classification-- summary under Section 96 Summary Under Tax Topics- Income Tax Act- Section 96 French SCPI is a corporation rather than partnership CRA ruled that a société civile de placement immobilier (“SCPI”) [real estate investment company] was a corporation for ITA purposes and a “company” for purposes of the Canadian application of the Convention with France. ...

6 February 2001 External T.I. 2000-0044095 F- Honoraires- retenue d'impôt non-résident-- summary under Article 7 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 7 management fees exempted from withholding by business profits article in Canada-US treaty Regarding whether a Canadian resident corporation should withhold tax on fees it pays for services rendered in the United States by individuals resident in the United States, CCRA indicated that, as the Canada-US treaty did not contain a specific article on management or administration fees and those fees were covered by the business profits provisions, a Canadian resident was not required to withhold pursuant to s. 215(1) with respect to the reasonable portion of management fees paid to a U.S. resident who did not have a permanent establishment in Canada. ...

V(9)(a) of the Canada-US Convention retroactively to impute a permanent establishment. ...

After noting that s. 4.1 of the Income Tax Conventions Interpretation Act states that the GAAR applies to any benefit provided under a tax treaty, CRA indicated that it continues to contemplate the application of the GAAR to transactions undertaken primarily to secure a tax benefit accorded by a tax treaty and that the GAAR Committee has approved the application of the GAAR in certain treaty-abuse arrangements. ...

28 June 2010 External T.I. 2009-0329511E5- United States- Dividend Withholding Rate-- summary under Article 29A Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 29A S-Corp a qualified person if meets base erosion test A U.S. resident citizen is the sole shareholder of a U.S. ...

2012 Ruling 2011-0424211R3- Article X(2) and 84(3) deemed dividends-- summary under Article 10 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 10 Treaty-reduced rate applicable to redemption all of the common shares of a Canadian grandchild held by US beneficial grandparent All of the Class A shares of two taxable Canadian corporations ("OpCo2" and "Salesco") are owned by a corporation ("USSalesco1") which is not fiscally transparent and is resident in the U.S. for purposes of the Canada- U.S. ...