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7 July 2022 Internal T.I. 2021-0893791I7- Interest expense on subordinated income instrument-- summary under Article 9 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 9 OECD principles re interest on related-party debt In the early 1980s, Holdco received a ruling as to the deductibility (subject to ITA s. 18(4)) of its interest expense on a 40-year U.S. $15 million debenture (“Debenture”) issued by it to Parent, which bore interest for each year of the lesser of 11% per annum and Holdco’s profits in that year. ...

20 June 2023 Internal T.I. 2021-0904981I7- Application of ss.227(6) to treaty benefits-- summary under Article 18 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 18 ITA s. 227(6) time limitation applied where “as if resident” clause is silent on the timing of refund claim As an example of an “as if resident” (“AIR”) clause, the Directorate referred to Art. 18(2) of the Canada-Italy Treaty which relevantly indicated that the tax which Canada could impose on a periodic pension arising in Canada does not exceed the lesser of (a) 15% of the excess of the annual pension amount over Cdn.$12,000, and (b) the amount of Canadian tax the recipient would have been required to pay on the annual pension amount had the recipient been resident in Canada. ...

12 December 2023 External T.I. 2021-0881541E5- Pension benefit from Chile-- summary under Article 18 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 18 an exceptional COVID-related withdrawal from a Chilean pension plan qualified as an exempted pension under the Canada-Chile Treaty The Chilean government, in response to the pandemic, adopted an exceptional measure (the “Measure”) in 2020, permitting the withdrawal of up to 10% of the pension savings in the individual pension accounts managed by the Pensions Funds Administrators (“AFP”) in Chile. ...

6 December 2023 External T.I. 2017-0735631E5- Distribution of funds from an IRA and 401(k)-- summary under Article 18 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 18 a Canadian resident may access the Art. ...

After indicating that the PPT had supplanted Art. 10(8), CRA noted: Example E in para. 182 of the 2017 OECD Commentary on Art. 29 of the Model Convention describes the similar situation of a shareholder who is slightly below the threshold for access to the lower dividend rate, and who acquires shares for the purpose of taking advantage of the reduced rate. ...

15 May 2024 IFA Roundtable Q. 1, 2024-1007651C6- Principal purpose test and the UK-Canada Tax Treaty-- summary under Article 10 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 10 marginally increasing a shareholding to access the Treaty-reduced rate likely would not engage the PPT A UK-resident corporation increased its voting shareholding of Canco the day before a dividend was paid so as to hold 10% of the shares. ...

The Directorate indicated that the presentations and exhibitions at the convention were primarily intended to enable participants to acquire new skills, learn about new developments or simply meet people or make themselves known so that, consequently, the expenditures were capital expenditures as they provided a lasting benefit to the manager. ...

Tax Treaty-- summary under Article 29A Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 29A gain of US resident from disposition of Cdn subsidiary’s shares can be considered to be from a connected business Regarding whether Canadian-source income has been derived by a U.S. resident in connection with an active trade or business in the U.S., CRA stated: 1)... ...

In the event that the multilateral convention on implementing Pillar One, Amount A is adopted, then the national DST will be removed, and CRA will be prepared to adjust its filing and compliance requirements accordingly. ...