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Income Tax Convention: Permanent Establishment & Independent Agent Question 5 Under the Canada-U.S. Income Tax Convention, a resident of the U.S. is not deemed to have a permanent establishment in Canada merely because the U.S. resident carries on business in Canada through a broker, general commission agent or any other agent of an independent status, provided that such persons are acting in the ordinary course of their business. ... Income Tax Convention and Article 5 of the OECD Model Convention. Subject: Permanent Establishments and Independent Agents ...

12 October 2004 External T.I. 2004-0097271E5- XXXXXXXXXX as instrumentality Unedited CRA Tags Article XI 212(1)(b) Principal Issues: Whether the XXXXXXXXXX is an instrumentality for purposes of the US Convention. ... XXXXXXXXXX 2004-009727 Eliza Erskine October 12, 2004 Dear XXXXXXXXXX: Re: Status of the XXXXXXXXXX as an Instrumentality This is in reply to your email of October 5, 2004, requesting us to confirm that the Canada Revenue Agency (the "CRA") views the XXXXXXXXXX as an instrumentality for purposes of the Canada-United States Income Tax Convention (the "Convention"). ... Despite this, we find that the better view is that the XXXXXXXXXX is an instrumentality for purposes of the Act and the Convention, on the basis that the Crown has effective control of the XXXXXXXXXX (in particular, see XXXXXXXXXX) and the XXXXXXXXXX performs functions of a governmental nature. ...

Principal Issues: Residence for purposes of our income tax conventions Position: see attached reply Reasons: see attached reply International Fiscal Association Conference CCRA Panel May 13, 2002 Question 4. Resident of a Contracting State Since the decision of the Supreme Court of Canada in Crown Forest there has been much debate and discussion concerning the concept of resident of a contracting state for the purposes of Canada's bilateral income tax conventions. ... We are currently looking at a number of preferential tax regimes and have asked the Department of Finance for their views on various tax policy issues as they relate to the concept of residence for purposes of our income tax conventions and, in particular, the meaning of the phrase "liable to tax" for purposes of paragraph 1 of the Residence Article of those conventions. ...

Middleton   (613) 957-2127 Attention: 19(1) EACC9278 August 23, 1990 Dear Sirs: This is in reply to your letter of April 18, 1990 concerning paragraph 3 of Article 11 of the Canada-Poland Income Tax Convention (the "Convention"). In the opening paragraph of your letter, you indicated that interest arising in Canada and paid to a resident of Poland would be exempt from tax in Canada by virtue of paragraph 3 of Article 11 of the Convention if the interest is paid in respect of a loan that is "insured" by the Government of Canada. ... As you indicated in the telephone conversation of August 9, 1990 (Middleton/19(1)) since  paragraph 3 of Article 11 of the Convention does not have application to your particular situation, there is no need for this Division to address the other queries set out in your letter. ...

Middleton (613) 957-2127 Attention: 19(1) Dear Sirs: This is in reply to your letter of April 18, 1990 concerning paragraph 3 of Article 11 of the Canada-Poland Income Tax Convention (the "Convention"). In the opening paragraph of your letter, you indicated that interest arising in Canada and paid to a resident of Poland would be exempt from tax in Canada by virtue of paragraph 3 of Article 11 of the Convention if the interest is paid in respect of a loan that is "insured" by the Government of Canada. ... As you indicated in the telephone conversation of August 9, 1990 (Middleton/19(1)) since paragraph 3 of Article 11 of the Convention does not have application to your particular situation, there is no need for this Division to address the other queries set out in your letter. ...

An agreement under Paragraph 7(c) of Article XI of the Canada-Indonesia Income Tax Convention can only be finalized by an exchange of letters between the competent authorities of the two contracting states. Paragraph 1(f)(ii) of Article III of the Convention delegates the competent authority function to your Minister of Finance or his duly authorized representative. ... We Suggest that you contact your Ministry of Finance and request that they initiate action to have the XXX recognized under Article XI of the Convention. ...

IV 5-910837 Jim Wilson (613) 957-2120 External Technical Interpretation Inquiries This is in reply to your letter of March 19, 1991 in which you questioned whether we would consider an exempt charitable organization situate in Israel to be “resident of a Contracting State” for purposes of Article IV of the Canada-Israel Income Tax Convention (the “Convention”). This will confirm that for the purposes of the Convention and other income tax treaties comparable thereto we are of the opinion that an exempt organization that is created or organized 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 law thereof. Accordingly an exempt charitable organization that is resident in Israel will be entitled to the benefit of Article XXI of the Convention (ie. reduced withholding rate of 15%) on income arising in Canada from an estate or trust. ...

As permitted by the Convention, Revenue Canada, Taxation has entered into an arrangement with the Federal Tax Administration of Switzerland whereby we periodically provide them with copies of NR$ and NR$-A slips that show amounts paid to persons with Swiss addresses. We are of the opinion that the Convention authorizes our department to provide this information to the Swiss authorities in the manner presently being exercise. However, where the interest and dividends are remitted directly to a Lienchtenstein beneficial owner, the Convention would not apply (i.e. we would not provide the Swiss with a copy of the NR4). ...

Convention which refers to an exemption for U.K. charities from Canadian withholding tax in respect of dividends. They do, however, refer to paragraph i of Article 10 of the Convention and infer that in some way it exempts withholding on dividends paid to U.K. charities. ... However, paragraph 1 of Article 10 of the Convention does reduce the rate of withholding from 25% to 15%. ...

Tax Convention (1942), and will remain so under the greater relief provisions of Article XXX of the Canada-U.S. Tax Convention (1980) until the end of the taxpayer's first taxation year that begins on or after January 1, 1985. Thus, as in-your example, a taxpayer with an October 31 year-end would not be subject to the reduced rate of withholding under Article XII of the new Convention in respect of such payments made before November 1, 1986. ...