Search - convention

Canada, 2004 DTC 6103, 2004 FCA 51-- summary under Article 2 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 2 Article VI of the Canada-Ireland Convention, which provided that "the rate of Canadian tax on income... derived from sources within Canada by a resident of Ireland shall not exceed 15 percent" applied to limit the rate of capital gains tax payable by a resident of Ireland on the disposition of shares of a Canadian private corporation to 15 percent of the taxable capital gain rather than of the capital gain, given that both Article II(3) of the Convention and s. 3 of the Income Tax Conventions Interpretation Act mandated that the meaning to be given to a term found in a treaty should be the meaning given to the term from time to time under the Act, unless the context otherwise required. ...

Canada (National Revenue), 2021 FCA 62-- summary under Subsection 231.7(1) Summary Under Tax Topics- Income Tax Act- Section 231.7- Subsection 231.7(1) Minister obtained compliance order re French request for trust details re French wealth tax Art. 26(1) of the Canada-France Convention provided for exchanges of “such information as is foreseeably relevant … to the administration or enforcement of the domestic laws concerning taxes of every kind … imposed on behalf of the Contracting States, insofar as the taxation thereunder is not contrary to the Convention.” ... Blue Bridge argued that it was the Minister’s responsibility to ensure that the “taxation … not contrary to the Convention” condition in Art. 26 was met before transmitting the requested information to France, whereas here, France was seeking to impose tax under a French wealth-tax statute which attributed all foreign trust assets to a French settlor or beneficiary in order to subject them to the tax, which in its view raised the possibility of the information being used to levy tax contrary to the Convention. ...

The Queen, 92 DTC 6194, [1992] 1 CTC 306 (FCA)-- summary under Article 7 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 7 The taxpayer, which was a U.S. corporation with a mining operation in B.C., was prohibited by s. 18(1)(m) from deducting royalties payable by it to the Province of B.C. notwithstanding the provisions of the 1942 Canada-U.S. Income Tax Convention which provided that in determining the net industrial and commercial profits of a permanent establishment there shall be allowed as deductions all expenses reasonably allocable to the permanent establishment. ... Such a result would not be in accordance with the policy expressed in the preamble to the Convention..." ...

R.) [1997] 3 C.T.C. 435 (FCA)-- summary under Article 3 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 3 no requirement for a definition per se in the domestic legislation for 3(2) to apply The Court found that a "gain" for purposes of Article XIII, paragraph 9 of the Canada-U.S. Convention was a gain determined for purposes of s. 40(1) of the Act, i.e., a gain determined with reference to the period after December 31, 1971, rather than with reference to the total period of ownership (in this case, since 1967). MacGuigan J.A. noted (at p. 5456) that "the Convention does not require that there be a definition in the domestic legislation but only that the meaning of the term in question can be derived from it". ...

In finding that the appeal of the taxpayer should be allowed and the matter referred back to the Tax Court for reconsideration, Rivoalen JA stated (at para. 29): The Tax Court stated that because it found the appellant was a resident of Canada for tax purposes, the Convention does not have a direct bearing on this appeal.... This is an error because if the Convention provides an exception or relief to the appellant, it would take precedence over the Act. The Tax Court did not apply and consider the provisions of the Convention to the facts of this case. ...

Canada, 2004 DTC 6103, 2004 FCA 51-- summary under Section 3 Summary Under Tax Topics- Other Legislation/Constitution- Federal- Income Tax Conventions Interpretation Act- Section 3 Article VI of the Canada-Ireland Convention, which provided that "the rate of Canadian tax on income... derived from sources within Canada by a resident of Ireland shall not exceed 15 percent" applied to limit the rate of capital gains tax payable by a resident of Ireland on the disposition of shares of a Canadian private corporation to 15 percent of the taxable capital gain rather than of the capital gain, given that both Article II(3) of the Convention and s. 3 of the ITCIA mandated that the meaning to be given to a term found in a treaty should be the meaning given to the term from time to time under the Act, unless the context otherwise required. ...

The Queen, 81 DTC 5140, [1981] CTC 209 (FCA)-- summary under Article 13 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 13 meaning of exchange The purchase of shares pursuant to an employee stock option agreement was found not to be "an exchange of capital assets" within the meaning of the 1942 Canada-U.S. Convention. ...

Associates Corp. of North America, 80 DTC 6140, [1980] CTC 215 (FCA)-- summary under Article 11 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 11 Guarantee fees received by a U.S. corporation from its Canadian subsidiary did not constitute "interest" within the meaning of the 1942 Canada-U.S. Tax Convention, given the absence of any provision therein permitting the assimilation of guarantee fees within "interest" by a deeming provision such as ss.214(15)(a) of the Act. ...

., 99 DTC 5222, [1999] 3 CTC 82 (FCA)-- summary under Article 9 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 9 McDonald J.A. found that the capitalization of the taxpayer by non-resident related shareholders with close to 100% debt financing meant that the loans were those that no arm's-length lender would have made. ... Convention effectively overrode the rule in s. 18(4) of the Act. ...

Canada, 2006 DTC 6071, 2006 FCA 32-- summary under Article 4 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 4 The taxpayer, who lived and worked in the United States for ten months in 2001 (throughout which period his wife continued to live in the family home in Mississauga) as a result of accepting a position which he believed to be of indefinite duration, but returned to Canada after ten months when the job ended unexpectedly. ... Income Tax Convention remained in Canada. ...