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Income Tax Convention (the "Convention") under Article IV thereof, for the reason that such LLC is not subject to tax in the United States. As a result, such LLC does not qualify for any of the benefits that are available to a person who is a resident of the United States for the purposes of the Convention. ... This being the case, at this time the Department has no basis on which to look through to the residency of such persons for the purposes of providing relief under an income tax convention. ...

Position: 25% Reasons: Wording of the Convention XXXXXXXXXX 5-980593 Fouad Daaboul Attention: XXXXXXXXXX May 19, 1998 Dear Sirs: Re: U.S. ... Income Tax Convention (the "Convention"), all payments (periodic pension payment or lump sum payment) out of RRSPs and RRIFs are considered to be pensions. ... In this case, paragraph 2(a) of Article XIII of the Convention does not provide any relief and consequently the withholding tax rate remains at 25% of any payment pursuant to subsection 212(1) of the Act. ...

Income Tax Convention (the "Convention"). If such LLC's mind and management is situated in Canada, it will be a resident of Canada for the purposes of paragraph 1 of Article IV of the Convention, paragraph 3 of Article IV of the Convention will not apply and subsection 250(5) of the Act will not apply. ... Where the mind and management of the LLC is situated in the U.S. the LLC will be considered resident in the U.S. for Canadian tax purposes, however it will not be considered a resident of either contacting state under the Convention. ...

The taxpayer was of the view that the pension in question was not taxable in Canada by virtue of paragraph 5(b) of Article 18 of the Canada-Netherlands Income Tax Convention (the "Convention"). The information initially submitted did not provide adequate information so as to permit us to determine whether or not the pension was exempt from tax in Canada by virtue of either the Convention or the Income Tax Act (the "Act"). ... We also confirm that it is our position that the above pension does not fall within paragraph 5(b) of Article 18 of the Convention. ...

Income Tax Convention (1980) (the "Convention") because it had a place of management in the United States even though it was not incorporated or taxed in the United States on its income. ... To be a resident of either Contracting State for the purpose of paragraph 1 of Article IV of the Convention a person must be liable to tax on its world income in that State by virtue of one of the criteria listed in paragraph 1 of that Article. ... Therefore, non-U.S. corporations are not residents of the United States for the purposes of the Convention. ...

Leung Attention: xxxxxxxxxx September 2, 1999 Dear Sirs: Re: Residency Status of a Qualified Subchapter S Subsidiary of the United States for the Purposes of the Canada-United States Income Tax Convention We are writing in response to your inquiry as to whether a qualified subchapter S subsidiary ("QSSS") of a S corporation of the United States (the "U.S.") is considered to be resident in the U.S. for purposes of paragraph 1 of Article IV of the Canada-United States Income Tax Convention (the "Convention"). ... In our opinion, as long as our position regarding a S corporation being a person resident in the U.S. for the purpose of paragraph 1 of Article IV of the Convention remains unchanged, a QSSS would be considered a person resident in the U.S. for the same purpose. ...

Income Tax Convention. As a result of several enquiries concerning the residency status of exempt organizations created in a country with which Canada had a tax treaty, the matter was reviewed by this Division. ... However, we are prepared to issue the amended interpretation you requested to put the wording in line with paragraph 1 of Article XXI of the Convention.  ... It should be noted that the charitable organization must qualify as a resident of Canada or the United States in order to fall within the wording of Article XXI of the Convention. ...

Provincial and International Relations Division have indicated that such arrangements on social security do not override the Act and would also have no effect on income tax agreements or conventions. The only tax agreement or convention which we are aware of which overrides the Act concerning social security payments is paragraph 5 of Article XVIII of the Canada-U.S. Income Tax Convention (Convention). In the case of the United States, we have indicated that, in the calculation of taxable income of a U.S. resident under section 217 of the Act, the individual would be permitted a paragraph 110(1)(f) deduction with respect of benefits received from OAS and CPP/QPP pursuant to paragraph 5 of Article XVIII of the Convention. ...

Senécal   (613) 957-2074 November 28, 1990 Dear   19(1) This is in reply to your letter of November 21, 1990, concerning taxation by Spain of fees earned by your company with respect to a contract to be entered into by your firm to provide  24(1) We are not aware of any special tax concessions adopted by the Spanish Government with respect to foreign companies performing work for the 24(1) However, Article 7 of the Canada-Spain Income Tax Convention (copy attached) does provide that the business profits of a Canadian enterprise are only taxable in Canada unless the enterprise has a permanent establishment in Spain. ... Article 1 of the Convention (copy attached) provides that the Convention shall apply only to residents of one or both of the Contracting States. In as much as a resident of a Contracting State is defined in the Convention as being any person liable to tax in that State by reason of residence, place of management, etc., the Spanish tax authorities have the right to ask that the Canadian tax authorities confirm that your company is a resident of Canada and liable to tax here prior to granting any relief provided for in the Convention. ...

Wilson advised that your original inquiry as to whether a trust whose income is exempt in its hands and in the hands of the beneficiaries can be a "resident of a Contracting State" for treaty purposes was meant to relate to a trust that did not meet the definition of a religious, scientific, literary, educational or charitable organization under Article XXI of the Canada-United States Income Tax Convention 1980 (the "Convention") but is exempt from taxation in the United States. This will confirm that for the purposes of the Convention and other treaties comparable thereto we have adopted the position that an organization that is resident in a Contracting State will generally be considered to be a "resident of" that State notwithstanding that it is granted exemption from tax in such State by the tax laws thereof. ... However, provided the exemption from tax does not arise simply from the flow through of the trust's income to its beneficiaries and provided paragraph 6(a) of Article XXIX of the Convention does not apply, we see no reason not to generally apply our position to trusts. for DirectorReorganizations and Non-Resident DivisionRulings DirectorateLegislative and IntergovernmentalAffairs Branch ...