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Principal Issues: Can an election be made under paragraph 7 of Article XVIIII of the Canada-United States Income Tax Convention (the "Convention") with respect to income of a Roth IRA otherwise taxable in the hands of a Canadian resident beneficiary? ... Leung December 11, 2002 Dear XXXXXXXXXX: Re: Taxation of Roth IRA Income and Withdrawals under Article XVIII of the Canada-United States Income Tax Convention (the "Convention") This is in reply to your letter of July 16, 2002 in which you requested our opinion as to whether paragraph 1 of Article XVIII of the Convention would apply to exempt Roth IRA withdrawals of a U.S. citizen resident in Canada (the beneficiary) from Canadian taxation and whether paragraph 7 of that Article would apply to allow the beneficiary to make an election to defer taxation in Canada with respect to capital gains realized in the plan but not distributed by the plan. The reason you have limited your enquiry regarding the application of paragraph 7 of Article XVIII of the Convention to capital gains is that you are of the understanding that interest and dividends earned by the Roth IRA are not taxable in the hands of the beneficiary pursuant to paragraph 2 of Article XXI of the Convention. ...

Reasons: Application of the Act and the Convention XXXXXXXXXX 2013-050977 S.E. ... The terms "real property" and "immovable property" are defined in section 5 of the Income Tax Conventions Interpretation Act ("ITCIA") for purposes of Canada's tax conventions, as follows: 5. Definitions — 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, "immovable property" and "real property", with respect to property in Canada, are hereby declared to include (a) any right to explore for or exploit mineral deposits and sources in Canada and other natural resources in Canada, and (b) any right to an amount computed by reference to the production, including profit, from, or to the value of production from, mineral deposits and sources in Canada and other natural resources in Canada; Therefore, if Mr. ...

You have indicated that you are currently filing your tax returns in XXXXXXXXXX based on Article XXVII of the Canada XXXXXXXXXX Tax Convention (the "Tax Convention") and paragraph 2 of Article 37 of the Vienna Convention on Diplomatic Relations (the "Diplomatic Convention"); and that as long as you continue to serve as XXXXXXXXXX staff of the XXXXXXXXXX Embassy you will be a fiscal resident of XXXXXXXXXX pursuant to Article XIX of the Tax Convention. ... The FMIOA gives certain articles of the Diplomatic Convention and the Vienna Convention on Consular Relations (the "Consular Convention") the force of law in Canada. ... Residency for purposes of the Tax Convention is generally determined under Article IV of the Tax Convention. ...

deemed to be a resident of XXXXXXXXXX, or exempt from tax, under the Canada XXXXXXXXXX Tax Convention (the "Tax Convention"). ... The FMIOA gives certain articles of the Vienna Convention on Diplomatic Relations (the "Diplomatic Convention") and the Vienna Convention on Consular Relations (the "Consular Convention") the force of law in Canada. ... Residency for purposes of the Tax Convention is generally determined under Article IV of the Tax Convention. ...

UN Model Convention In our view, the corresponding paragraph in the UN Model Double Taxation Convention 2001 ("UN Model Convention") also supports our views. ... It can therefore be inferred that the drafters of the UN Model Convention saw the Construction Paragraph and the corresponding paragraph in the UN Model Convention as both being stand-alone tests. ... Neither the Model Convention nor the UN Model Convention requires recourse to their respective paragraph 1 of Article 5 for a Site or Project to give rise to a PE. ...

Tax Convention (the "Convention") and subparagraph 212(1)(d)(iii) of the Income Tax Act (the "Act") to commissions earned by a non-resident insurance agent. ... However, pursuant to the Convention, Canada's right to tax such business income not attributable to a PE in Canada is restricted to income from dividends, interest and royalties (see Articles X(8), XI(5) and XII(5) of the Convention). ... " In our view, the Commissions cannot be said to constitute royalties for the purposes of the Convention. ...

Are SRLs entitled to benefits under the Barbados Convention, specifically, are SRLs excluded from the application of the Barbados Convention by virtue of Article XXX(3) of that Convention? ... " Pursuant to Article XXX(3) of the Barbados Convention, IBCs are not entitled to benefits under the Barbados Convention. ... Paragraph 5907(11.2)(c) of the ITR states: "(c) where the agreement or convention entered into force before 1995, the affiliate would, at that time, be a resident of that country for the purpose of the agreement or convention but for a provision in the agreement or convention that has not been amended after 1994 and that provides that the agreement or convention does not apply to the affiliate. ...