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26 August 2010 External T.I. 2004-0078321E5- Computation of branch profits Unedited CRA Tags 115(1)(a)(ii); 18(1)(v); 20.2; Canada-UK Income Tax Convention; s. 4 of the Income Tax Conventions Interpretation Act Principal Issues: Whether certain transactions between the Canadian branch of a non-resident bank and another branch of such bank situated in a third jurisdiction would be recognized in computing the Canadian branch profits of the bank Position: Transactions will be recognized to the extent that they are relevant in computing the bank's income earned in Canada under the Act Reasons: An authorized foreign bank's income earned in Canada is its profit, subject to Part I modifications, reported to the Supt of Financial Institutions XXXXXXXXXX 2004-007832 Ross Kauffman August 26, 2010 Dear XXXXXXXXXX: Re: Recognition of Inter-Branch Transactions This is in reply to your letter in which you asked for our views on whether certain transactions between the Canadian branch of a non-resident corporation and another branch of such corporation situated in a third jurisdiction would be recognized in determining the Canadian branch profits of the corporation for the purposes of the Canada-UK Income Tax Convention (the "Treaty"). ... This view is supported by section 4 of the Income Tax Conventions Interpretation Act, which requires that, for the purposes of the application of a tax treaty, the profit attributable to a permanent establishment in Canada under the treaty shall, except where the treaty expressly otherwise provides, include amounts required to be included under the Act and exclude amounts that would not be deductible under the Act. ...

Est-il contraire à la législation fiscale qu'un juge entérine une telle convention? ... Dans la négative, vous voulez savoir s'il est contraire à la législation fiscale qu'un juge entérine une telle convention. ... En effet, la LIR ne contient aucune restriction à l'égard du "partage" de la prestation fiscale canadienne pour enfants entre parents qui sont soit séparés soit divorcés ni ne contient aucune disposition qui empêcherait un juge d'entériner une telle convention. ...

Tax Convention provided. Reasons: Par. 153(1)(a), Reg. 102(1) and Reg. 104(2) require withholding of Canadian income tax by a resident and non-resident employer when the employee is a resident of Canada. 2005-012180 XXXXXXXXXX Catherine Bowen (613) 957-8284 November 1, 2005 Dear XXXXXXXXXX: Re: Withholding of income tax on salary paid to an employee This is in response to your letter dated February 21, 2005 wherein you requested our comments on whether an employee who has a home in Canada but works for a company in the United States of America (the "U.S. ... Where this is the case, then the individual's deemed residence status for purposes of the Canada-United States Income Tax Convention (the "Convention") will be determined by the "tie-breaker rules" found in Article IV of the Convention. ...

Our understanding of the facts, proposed transactions and purpose of the proposed transactions is as follows: FACTS 1.XXXXXXXXXX is a corporation resident in The Netherlands and a wholly-owned subsidiary of XXXXXXXXXX does not carry on business in Canada nor does it have a permanent establishment in Canada for purposes of the Convention. ... RULINGS GIVEN Provided that the above statements constitute a complete and accurate disclosure of all of the relevant facts, proposed transaction and purpose of the proposed transaction, and that the proposed transaction is carried out as set forth herein, the following rulings are given: A.For the purposes of paragraph 4 of Article 13 of the Convention, the XXXXXXXXXX are properties (other than rental properties) in which the business of the company is carried on and therefore do not constitute immovable property under paragraph 4(a) of Article 13. B.Where the greater part of the value of the shares of XXXXXXXXXX is derived from the XXXXXXXXXX any gain from the disposition of these shares by XXXXXXXXXX will be exempt from taxation in Canada pursuant to paragraph 4 of Article 13 of the Convention. ...

Selon des conventions à intervenir, au plus tard le jour du cinquième anniversaire de leur émission, les PRETEURS acquerront leur part respective de chacun des prêts détenus par FILCO XXXXXXXXXX et FILCO XXXXXXXXXX en payant un montant égal au principal de chacun des prêts à ce moment. ... FILCO XXXXXXXXXX et FILCO XXXXXXXXXX paieront l'achat des actions en endossant le chèque ou la traite bancaire au bénéfice des PRETEURS et verseront un autre montant pour le paiement des dividendes et des autres frais. 3.Le premier alinéa du paragraphe 98 de la section 12 de la partie II "transactions projetées" de la Décision, tel que modifié par la lettre du XXXXXXXXXX 1997 est remplacé par: Selon des conventions à intervenir, tous les "flux monétaires excédentaires", afférents à chaque entreprise du groupe détenue par XXXXXXXXXX, et ce, pour chaque exercice financier, devront servir, sous réserve des paiements prioritaires prévus aux paragraphes 92 à 97, à l'achat pour annulation par les FILCOS des actions de détresse dans les 120 jours après la fin de cet exercice financier. 4.Le titre de la section 13 de la partie II "transactions projetées" de la Décision et le paragraphe 99, tels que modifiés par la lettre du XXXXXXXXXX 1997, sont remplacés par: 13. Conventions à intervenir concernant l'achat des actions privilégiées de détresse en cas de défaut 99. ...

File # 932993 Principal Issues: Whether an annual pay out amount from a RRIF with a 5 year term is a "periodic pension payment" as defined in section 5 of the ITCIA and under paragraph 2(a) of Article XVIII of the Canada-US Convention. ... Accordingly, an annual pay out amount under a 5 year RRIF will seldom, if ever, qualify as a "periodic pension payment" under section 5 of the ITCIA or paragraph 2(a) of Article XVIII of the Canada-US Convention. 932993 XXXXXXXXXX G. ... Income Tax Convention (the "Treaty") in respect of payments from a Registered Retirement Income Fund ("RRIF")" to a resident of the U.S. ...

The withholding rate may be reduced by virtue of a tax convention or agreement. Canada has preserved its right to tax such payments in most of the tax conventions and agreements which it has entered into. For instance, under the Canada-U.S. 1980 Tax Convention, Canada has reserved its right to tax lump sum payments paid out of a retirement plan at the rate of 25%. ...

Tax Convention provides that, for purposes of Canadian income tax, gifts to "an organization that is a resident of the United States, that is generally exempt from United States tax and that could qualify in Canada as a registered charity if it were a resident of Canada and created or established in Canada", are treated as gifts to a registered charity. However, paragraph 6 of Article XXI of the Convention limits the amount of gifts that entitle the Canadian resident to a tax credit to the income of the Canadian resident arising in the United States. 3-960093 XXXXXXXXXX Attention: XXXXXXXXXX XXXXXXXXXX, 1996 Dear XXXXXXXXXX: Re: XXXXXXXXXX Advance Income Tax Ruling This is in reply to your letters of XXXXXXXXXX in which you requested an advance income tax ruling on behalf of the above-mentioned taxpayer with respect to the proposed transactions described below. ... C.In determining the amount of the tax credit referred to in Ruling B above, paragraph 6 of Article XXI of the Convention will apply, such that the tax credit will be calculated only by reference to XXXXXXXXXX income arising in the United States. ...

Income Tax Convention (1980) (the "Treaty"). Position TAKEN: Yes. ... Income Tax Convention (1980) This is in reply to your letter dated April 2, 1996 in which you requested the Department's opinion concerning the above referenced subject. ... Income Tax Convention (1980) (the "Treaty") when a credit union resident in Canada pays a dividend on its shares to a U.S. resident. ...

PRINCIPALE QUESTION: La convention de règlement constitue-t-elle un «règlement structuré» de sorte que les versements périodiques en vertu de ce règlement ne constitueront pas un contrat de rente pour l'application de l'article 12.2 et du paragraphe 56(1) de la Loi de l'impôt sur le revenu mais plutôt des paiements de dommages-intérêts non-imposables pour le bénéficiaire ou sa succession, selon le cas? ... Les termes et modalités de cette entente sont spécifiés dans le projet de convention de règlement et reçu-quittance qui était joint à votre demande. 4.Les modalités du règlement prévoiront, entre autres, des versements mensuels périodiques de XXXXXXXXXX. ... DÉCISION RENDUE 14.Pourvu que l'énoncé des faits et des opérations projetées soit exact et constitue une divulgation complète de tous les faits pertinents et des opérations projetées, que la convention de règlement et reçu-quittance soit substantiellement la même que le projet de convention soumis avec votre lettre du XXXXXXXXXX et, que les opérations soient effectuées telles que décrites aux présentes, nous confirmons que les versements mensuels périodiques, décrits au paragraphe 4 ci-dessus, que recevra XXXXXXXXXX ou sa succession, selon le cas, n'auront pas à être inclus dans le calcul de leur revenu aux termes de toute disposition de la Loi de l'impôt sur le revenu dans sa formulation actuelle. ...