Search - convention

All the partners of the partnership are non-residents of Canada: some are residents of the U.S., some are residents of countries with which Canada has an income tax convention, and some are residents in countries with which Canada does not have an income tax convention. ... Does the arrangement involve a change of residence or applicable tax convention? ... Alta Energy Luxembourg S.A.R.L.,[2020 FCA 43] involving the potential application of the GAAR to a benefit claimed by the taxpayer under the Canada-Luxembourg Tax Convention. ...

This pillar needs to be implemented by a new multilateral convention that will depart from the standards in existence in treaties, so it involves a heavy international legal overlay. ...

CbC reporting implementation So the implementation package includes a model of domestic legislation to provide consistent implementation across countries and to speed up the implementation process, and it also includes a model competent authority agreements that would sit on top of instruments like bilateral tax treaties or the multilateral convention on mutual administrative assistance. ... This slide talks about the multilateral competent authority agreement, which would sit on top of the multilateral convention and allow a large number of countries to agree to identical terms for the exchange of CbC reports in a streamlined manner. ...

This includes development of detailed model rules for national legislation, and a multilateral convention to implement the new system. ... It would only come into force in 2024 if the Pillar 1 multilateral convention had not come into force by that time. ...

Question 8: Principal Purpose Test Background On June 7, 2017, Canada signed the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting, commonly referred to as the Multilateral Instrument (“MLI”). ... On July 11, 2017, the OECD released the draft 2017 update to the OECD Model Tax Convention and Commentary. ... Currently, paragraph 4.1 of the Income Tax Conventions Interpretation Act states that section 245 of the Income Tax Act (the “Act”) applies to any benefit provided under a tax treaty. ...

Q.3- Draft IC71-17R6, Paragraph 43 We understand that Information Circular IC71- 17R5 Guidance on Competent Authority Assistance Under Canada’s Tax Conventions is currently being revised. ...

That said, there will be differences, largely related to Canadian drafting conventions and compatibility with domestic legislation – but it is very important that the model rules be closely followed. ...

Q.4: Liable to Tax and Territorial Taxation In order to qualify for the benefits under an income tax convention agreed upon by the Government of Canada and the government of a foreign jurisdiction (a Tax Treaty), a person must generally be considered a resident of a “Contracting State” for the purposes of the relevant Tax Treaty. ... The resolution of such interpretative issues requires a textual, contextual and purposive analysis of the relevant provisions of the applicable Tax Treaty, in light of the applicable foreign tax legislation, as well as secondary authoritative sources, including for example the Organization for Economic Cooperation and Development relevant Model Tax Convention and its Commentary. ...

Tax Convention (“the Treaty”)? CRA Response Generally, when a person (“a miner”) that operates Mining Equipment creates a valid block, they will receive an amount of the mined crypto-asset. ... Consistent with the commentaries on the OECD Model Tax Convention, a non-resident miner will generally be considered to carry on business in Canada through a permanent establishment where: the crypto-mining business is carried on, wholly or in part, through the operation of crypto-mining equipment; the crypto-mining equipment is at the non-resident’s disposal (whether the taxpayer owns or leases the crypto-mining equipment); and the crypto-mining equipment is used in an identifiable fixed geographic location within Canada. ...

That will be released as part of the release of the 2017 update to the OECD Model Tax Convention, which I expect will occur in May. ...