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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..." ...

Canada, 2012 DTC 5063 [at 6881], 2012 SCC 14-- summary under Article 4 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 4 Barbados trusts, which were resident in Barbados under ordinary principles but which were deemed to be resident in Canada under s. 94(1)(b), were not resident in Canada for purposes of the Canada-Barbados Income Tax Convention given that s. 94 did not deem a foreign trust to be a person resident in Canada for all purposes of Part I, but only for the purposes of Part I that were relevant to the determination of its Canadian source income and its foreign accrual property income. ...

.)-- summary under Article 18 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 18 The taxpayer, while a Canadian resident, received a lump sum payment on the winding-up of a pension fund operated by his former U.S. employer. ... Convention. The purpose of the deduction from gross income under the Code was merely to enable him to have the amount taxed under a different (non-standard) regime. ...

Swantje, 94 DTC 6633, [1994] 2 CTC 382 (FCA), briefly aff'd [1996] 1 S.C.R. 73, 96 DTC 6310-- summary under Subsection 180.2(1) Summary Under Tax Topics- Income Tax Act- Section 180.2- Subsection 180.2(1) The inclusion of the German pension income of the taxpayer (which was exempt from tax under Article 18 of the Canada-Germany Convention) in s. 180.2(1)(b)(i) was not contrary to that Convention. ...

R.) [1997] 3 C.T.C. 435 (FCA)-- summary under Article 13 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 13 period before 1972 excluded Given that "the ordinary meaning of 'gain' for the purposes of Article XIII of the [Canada-U.S.] Convention is the gain which is subject to tax " (p. 5454) the proration of gain under paragraph 9 of Article XIII, was required to be calculated by reference to the period of time that the property in question (a cottage owned by the taxpayer and his previously-deceased wife since 1967) had been held subsequent to December 31, 1971 (the date on which the capital gains became subject to tax) rather than during the whole period of ownership. ...

Canada, 2019 FCA 7-- summary under Article 18 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 18 Columbia-source government pension was not exempt from Canadian tax The taxpayer, who was a former Columbia government official, commenced receiving a pension from Columbia after he became a Canadian resident. ... In confirming the assessment, Gauthier JA stated (at para. 5): The wording of Article 17(1) of the Convention is clear in entitling the state of residence to tax pension income arising in another state, and Article 17(1) applies even where the pension is on account of government service pursuant to Article 18(1)(a). ...

., 2020 FCA 43, aff'd 2021 SCC 49-- summary under Article 13 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 13 Treaty shopping was not an abuse A Blackstone LP and a U.S. shale company transferred their investment in a Canadian subsidiary (Alta Canada), that was to develop a shale formation in northern B.C., to a Luxembourg s.à r.l (Alta Luxembourg – which, in turn, they held through an Alberta partnership). ... Webb JA rejected the particular Crown arguments in this regard-- that the object, spirit and purpose of Art. 13(4) required that: Alta Luxembourg be an “investor” (he stated, at para. 52, that “There is nothing to suggest that the underlying rationale for the exemption is that it would only be available to a resident of Luxembourg who invests in the particular corporation ….”) there be a potential to realize income in Luxembourg, whereas here the gain was offset by variable interest payable by Alta Luxembourg to the Alberta partnership (he stated, at para. 62, “There is no basis to find that the rationale for the definition of ‘resident’ would suggest that any criteria other than the criteria included in the definition of resident in Article 4, should be used ….”) the exemption be accessed only by persons who have some commercial or economic ties to Luxembourg (he stated, at para. 65, that “There is no distinction in the Luxembourg Convention between residents with strong economic or commercial ties and those with weak or no commercial or economic ties.”) He concluded (at para. 80): I agree with … MIL … that the object, spirit and purpose of the relevant provisions of the Luxembourg Convention is reflected in the words as chosen by Canada and Luxembourg. ...

Canada, 2002 DTC 6853, 2002 FCA 96-- summary under Article 14 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 14 The taxpayer, a U.S. ... Convention (Dependent Personal Services from Canadian income tax). Notwithstanding that the French version of Article XV used the expression "professions", it was found that Article XIV referred to income derived from contracts for services (independent contractors) and Article XV to income derived from employment contracts. ...

Canada, 98 DTC 6630, [1999] 1 CTC 1 (FCA)-- summary under Article 7 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 7 notional separate enterprise would not have rented the equipment The taxpayer, which was resident in the United States, entered into a contract to provide two "snubbing" units to Mobil Oil Canada Ltd. for use in connection with an underground blowout in an exploratory gas well off the coast of Nova Scotia, at a rate of U.S. $15,000 per day. ... MacDonald JA stated (at para. 29): The 1942 Convention requires that one consider what an "independent enterprise engaged in the same or similar conditions would do. ...

After noting (at para. 34) that “it falls to the Crown to identify the object, spirit or purpose of the provisions that, according to the Crown, have been frustrated or defeated,” Webb JA rejected Crown arguments that such object etc. required that Alta Luxembourg be an “investor” in the project (he queried the implicit proposition that, for example, a legatee should not benefit from the Treaty exemption, and stated, at para. 52, that “There is nothing to suggest that the underlying rationale for the exemption is that it would only be available to a resident of Luxembourg who invests in the particular corporation in which such resident holds shares”) there be a potential to realize income in Luxembourg, whereas here the gain was offset by variable interest payable by Alta Luxembourg to the Alberta partnership (he stated, at para. 62, that “There is no basis to find that the rationale for the definition of ‘resident’ would suggest that any criteria other than the criteria included in the definition of resident in Article 4, should be used to determine if a person is a resident of Luxembourg”) the exemption be accessed only by persons who have some commercial or economic ties to Luxembourg (he stated, at para. 65 that “There is no distinction in the Luxembourg Convention between residents with strong economic or commercial ties and those with weak or no commercial or economic ties.”) He concluded (at para. 80): I agree with … MIL … that the object, spirit and purpose of the relevant provisions of the Luxembourg Convention is reflected in the words as chosen by Canada and Luxembourg. ...