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Convention Article V, paragraph 7 Principal Issues: Whether a permanent establishment would not exist in Canada because of the Canada-U.S. ... Tax Convention (the "Convention"), Article V, paragraph 7. The circumstances described in your letter appear to relate to a factual situation, involving specific taxpayers. ... However, since Usco is a resident of the United States for purposes of the Convention, Canada would maintain its right to tax Usco's business income in Canada only if Usco carried on the business through a permanent establishment in Canada (Convention, Articles IV and VII). ...

Notwithstanding the provisions of a convention or the Act giving the convention the force of law in Canada, in this section and in the convention, [...] ... (ix) a superannuation, pension or retirement plan not otherwise referred to in this paragraph, and (b) if the convention includes a definition "pension", a payment that is a pension for the purposes of the convention or a payment (other than a payment of social security benefits) that would be a periodic pension payment if the convention did not include a definition "pension"; [Emphasis Added] The definition of "pension" under the paragraph 5(b) of the ITCIA expands rather than restricts the definition of "pension" under the Canada-Ireland treaty to include periodic pension payments. ... For such conventions, we interpreted "periodic payments" to mean PPPs [Periodic Pension Payments]. ...

Since you have indicated that this is a $200,000 taxable distribution in the U.S., we assume paragraph 1 of Article XVIII of the Canada-United States Income Tax Convention (the "Convention") would maintain Canada's right to tax the full amount of the lump-sum payment. ... It should also be noted that, in this case, none of the provisions of the Convention obliges Canada to provide a credit for such tax. ... Any amount of tax imposed by the U.S. in excess of that rate should be refunded by the U.S. pursuant to Article XXIV of the Convention. ...

We do not think that a taxpayer, who is an individual and a resident of Canada for the purposes of the Convention, would automatically be considered to have a permanent establishment or fixed base in the U.S. solely as a consequence of the United States maintaining its right to tax the taxpayer pursuant to paragraph 1 of Article XVI of the Convention. ... This is so notwithstanding the rules in Article XIV and Article XV of the Convention. In other words, among other things, there is no need to fulfil the requirement of Article XIV of the Convention to have a fixed base before the other Contracting State can have the right to tax the income from the performance of an independent personal service of a taxpayer earned in that fixed base in that State if that taxpayer is one of those persons referred to in paragraph 1 of Article XVI of the Convention. ...

Leung September 18, 2002 Dear XXXXXXXXXX: Re: Foreign Tax Credit and Article 21 of the Canada-China Income Tax Agreement (the "Convention") We are writing in reply to your letter of July 17, 2002, in which you requested our confirmation of your interpretation of paragraph 2 of Article 21 of the Convention with respect to the amount of foreign tax credit that Canada would provide to a Canadian resident corporation which receives royalty payments for technical know-how from a person resident in the People's Republic of China ("China"). Your interpretation is that even though Chinese taxes with respect to royalty payments are exempt or reduced by virtue of certain legislations of China described in subparagraphs 2(a), 2(b), 2(c) and 2(d) of Article 21 of the Convention, Canada is obliged to provide a foreign tax credit for such taxes to the extent of 15% of the gross payments of the royalties pursuant to clause 2(e)(III) of Article 21 of the Convention. ... Other Comments We offer no comments as to the applicability of subparagraph 2(d) of Article 21 of the Convention to Article 19 of the Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment and Foreign Enterprises referred to in your letter. ...

Before we address your first query, we must first clarify the Department's position on the taxation of foreign embassy employees under the provisions of the Income Tax Act (the "Act") and the Canada-Netherlands Income Tax Convention (1986) the ("Convention"). ... Under the Canada-Netherlands convention, the broadest exemption is provided if an international law or a special agreement will apply to exempt the individual.  ... In this latter case, Canada will provide a tax credit as required by Articles 22(4) and 22(5)(a) of the convention for any Netherlands' taxes paid. ...

Vous mentionnez que dans toute compagnie privée où l'on retrouve plusieurs actionnaires, il est de pratique courante que ces derniers signent entre eux une convention d'actionnaires.  ... Il est fréquent, dans les conventions d'actionnaires, de retrouver des dispositions restreignant le transfert et la vente des actions pour les fins des objectifs mentionnes ci-dessus.  ... L'offre dont il est question est sujette à une condition suspensive et, le jour où l'une des conditions visées par la convention se produit, l'offre devient opposable à l'actionnaire concerné. ...

Pour être une convention de retraite (la "convention"), un régime ou un mécanisme doit prévoir une "cotisation" par un employeur. ... En vertu du paragraphe 207.6(2) de la Loi, le contrat de rente est le bien déterminé et sera réputé être le bien de la convention. Ainsi, en vertu du paragraphe 207.6(1) de la Loi, le bien déterminé de la convention est réputé être détenu en fiducie et le dépositaire de la convention est réputé être le fiduciaire de la fiducie. ...

Income Tax Convention (1978) (the "convention") in the context of the hypothetical fact situation described below. ... All of the assets of Opco constitute property other than immovable property. within the meaning of Article XIII of the Convention. ... However, we are not in agreement with your views as to the interpretation of that provision of the Convention. ...

Your assessments for 1984 and 1985 have made allowance for the exemption provided in the Convention. ... For the period from January 1, 1986 to April 5, 1986 Article XVII of the Convention as it read prior to the amendment would apply to the payments you received from XXX. ... Please find attached the relevant provisions of the Convention. We hope the above is of assistance to you. ...