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Paragraph 9 of Article XXV of the Tax Convention provides that expenses in respect of a convention should not be disallowed in computing income of a taxpayer resident in a contracting state only because the convention took place in another contracting state. ... For more comments on the application of paragraph 9 of Article XXV of the Tax Convention, we refer you to the Technical Explanatory notes to the Tax Convention drafted by the U.S. ... Similarly, in the case of a citizen or resident of Canada attending a convention in the United States, paragraph 9 requires Canada to allow a deduction for expenses relating to such convention as if the convention had taken place in Canada. ...

Income Tax Convention SEP 5 1989 International Audits Division Specialty Rulings Directorate K.B. ... Income Tax Convention (the "Convention") This is in reply to your memorandum of June 27, 1989 wherein you requested our opinion concerning the treatment of capital gains arising from the disposition of real property under Article XIII of the Convention. ... In our opinion paragraph 3 of Article XIII of the Convention was intended to tax capital gains on the disposition of shares of the capital stock of a company, the value of which is derived principally from real property as that term is defined in the Convention (i.e. including not only real property as defined in Article VI of the Convention but also shares of the capital stock of other corporations or an interest in a partnership, trust or estate which is real property as defined in subparagraph 3(b) of Article XIII of the Convention). ...

31 August 1989 Income Tax Severed Letter 5-8357- Subparagraph 4(a) of Article 11 of the Canada-Netherlands Income Tax Convention of 1986 Unedited CRA Tags 212(1)(b), 251(1)(b), Canada–Netherlands Income Tax Convention art. 11 Dear Sirs: We are writing in response to your letter of July 6, 1989 in which you requested the Department's opinion regarding the application of paragraph 212(1)(b) of the Income Tax Act (the “Act”) and subparagraph 4(a) of Article 11 of the Canada-Netherlands Income Tax Convention of 1986 (the “Convention”) in the situation described below. ... We assume that, in the situation you describe, NethCo is, pursuant to paragraph 1 of Article 4 of the Convention, a resident of the Netherlands for the purposes of the Convention and that the only requirement of subparagraph 4(a) of Article 11 of the Convention that may not be met is the requirement that CanCo and NethCo deal with each other at arm's length for the purposes of the Convention. ... Where NethCo is so resident in Canada for the purposes of the Act and paragraph 3 of Article 4 of the Convention applies to deem NethCo not to be a resident of the Netherlands for the purposes of Article 11 of the Convention, subparagraph 4(a) of Article 11 of the Convention will not apply to preclude Canada from taxing any interest paid by CanCo to NethCo in accordance with the provisions of the Act. ...

31 August 1989 Income Tax Severed Letter AC58357- Canada–Netherlands Income Tax Convention H.K. ... We assume that, in the situation you describe, NethCo is, pursuant to paragraph 1 of Article 4 of the Convention, a resident of the Netherlands for the purposes of the Convention and that the only requirement of subparagraph 4(a) of Article 11 of the Convention that may not be met is the requirement that CanCo and NethCo deal with each other at arm's length for the purposes of the Convention. ... Where NethCo is so resident in Canada for the purposes of the Act and paragraph 3 of Article 4 of the Convention applies to deem NethCo to not be a resident of the Netherlands for the purposes of Article 11 of the Convention, subparagraph 4(a) of Article 11 of the Convention will not apply to preclude Canada from taxing any interest paid by CanCo to NethCo in accordance with the provisions of the Act. ...

Convention Unedited CRA Tags 251, Canada–U.S. Tax Convention Canada-U.S. ... XI Dear Sirs: Re: Subparagraph 3(d) of Article XI of the Canada-United States Income Tax Convention, 1980 (the "Convention") This is in reply to your letter dated February 7, 1991 whereby you requested our opinion concerning the meaning of the term "persons dealing with each other not at arm's length" in subparagraph 3(d) of Article XI of the Convention. In our opinion, by virtue of paragraph 2 of Article III of the Convention, the term "persons dealing with each other not at arm's length" has the same meaning as it does for purposes of the Canadian Income Tax Act (the "Act") as regards the application of the Convention by Canada. ...

Income Tax Convention- Deemed Residence Unedited CRA Tags Canada–U.S. Tax Convention Canada-U.S. Tax Treaty:Art. IV Dear Sirs: Re: Canada-U.S. ... Paragraph 1 of Article IV of the Convention does not mention citizenship as a basis for liability to tax. ...

30 June 1988 Income Tax Severed Letter 7-2490- [Canada—United States Income Tax Convention] JUN 30 1988 Mr. ... Cooper Canada- United States Income Tax Convention (the "Convention") Specialty Rulings Directorate This is in reply to your memorandum of January 14, 1988, concerning the application of Part XIII tax and the Convention on excess charges for royalties and management fees paid to related U.S. residents, which were disallowed pursuant to Part I of the Income Tax Act (the "Act"). ... Paragraph 7 of Article XII of the Convention clearly indicates that the excess portion of the royalty payment remains taxable according to the laws of each Contracting State with due regard being had to the other provisions of the Convention. ...

7 July 1991 Income Tax Severed Letter- Interest on loans — application of subparagraph 4(a) of Article 11 of the Canada-Netherlands Income Tax Convention Unedited CRA Tags 212(1)(b)(vii), Canada-Netherlands Income Tax Convension article 3, 11 Dear Sirs: This is in reply to your letter of May 8, 1991 in which you requested our views on the application of subparagraph 4(a) of Article 11 of the Canada-Netherlands Income Tax Convention (the "Convention"). Our understanding of the situation which you described is that interest on a loan is paid by a company resident in Canada for the purposes of the Convention to a company which is resident in the Netherlands for the purposes of the Convention. ... The term "arm's length" is not defined in the Convention but paragraph 2 of Article 3 of the Convention provides that "... any term not defined therein shall, unless the context otherwise requires, have the meaning which it has under the law of the State concerning taxes to which the Convention applies. ...

Even though he may be a factual resident or a deemed resident of Canada, it is possible that, for purposes of the Canada-USSR Tax Convention (the "Convention"), he may be deemed to be resident of the USSR by virtue of the residency tie-breaking rules in paragraph 2 of Article 4 of the Convention. If it is determined that XXX is a resident of the USSR under paragraph 1 or 2 of Article 4 of the Convention for a particular year, the provisions of Article 12 of the Convention will be available to him for the year. On the other hand, if it is determined that XXX is a resident of Canada under paragraph 2 of Article 4 of the Convention for a year, the provisions of Article 12 of the Convention will not be available to him for the year. ...

Our Comments Article 13 sub-paragraph 4 (a) of the Convention stipulates that the capital gain realized on the sale of the shards can be taxed in Canada, whereas by virtue of Article XVII of the Canada-Netherlands Income Tax Agreement Act, 1957, (the "Former Convention") such a gain would have been taxable only in the Netherlands. By virtue of paragraph 3 of Article 30 of the Convention, any provisions of the Former Convention that would have afforded any greater relief from tax shall continue to have effect for any taxation year beginning before the entry into force of the Convention. ... " The Convention entered into force on August 21, 1987, and 24(1) chose August 1, 1987 as the beginning of its fiscal period. ...