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Senécal Attention: XXXXXXXXXX June 12, 1995 Dear Sirs: Re: Article 13 of the Canada- United Kingdom Income Tax Convention This is in reply to your letter of January 5, 1995, wherein you request our opinion as to the application of subparagraphs 5(a) and 7(b) of Article 13 of the Canada- United Kingdom Income Tax Convention (the "Convention"). ... At issue is the question of whether the exception to the term "immovable property" found in subparagraph 7(b) of Article 13 of the Convention should be applied on a "look-through basis" for the purposes of subparagraph 5(a) of that Article. ... Given the fact that paragraph 5 of Article 13 of the Convention is to be applied on a look-through basis, it is our position that subparagraph 7(b) of Article 13 of the Convention, which specifically excludes property that would otherwise be immovable property, should also be applied on the same look-through basis. ...

2 August 1991 Internal T.I. 911309 F- Maintenance Payments- Canada/US Treaty Unedited CRA Tags 212(1)(f), Treaty US Article XVIII Dear Sirs: Re:  Article XVIII(6) of the Canada-United  States Income Tax Convention, 1980   This is in reply to your letter dated May 8, 1991 concerning the application of Article XVIII(6) of the Canada-United States Income Tax Convention, 1980 (the "Convention") in the following hypothetical fact situation: 1.      ... We note that, having regard to paragraph (2) of Article III of the Convention, it is possible that the position of the United States as to where the maintenance arises and thus application of paragraph (6) of Article XVIII of the Convention in respect of the determination of tax payable under the United States Internal Revenue Code may be different from our position as to the application of that provision of the Convention for Canadian tax purposes. ... The Technical Explanation issued by the United States on the Convention provides additional comments on this matter. ...

The software maintenance fees are not "royalties" as defined in paragraph 2 of Article X of the Convention. ... Given the fact that the software maintenance fees are not considered royalties under Article X of the Convention and that Canco does not have a permanent establishment in T&T to which the management fees and software maintenance fees are attributable, the Department would consider the net income attributable to these fees earned by Canco, to the extent that they are reasonable, to be "industrial or commercial profits" (as defined in paragraph 6 of Article V of the Convention) tax exempt in T&T in accordance with the Convention. ... Instead, the provisions of Article XI of the Convention may apply. In reference to the interpretation of paragraph 2 of Article XI of the Convention, it is a question of fact whether the individual who provides services in T&T to Trinco remains an employee of Canco. ...

Income Tax Convention (1980) (the "1980 Convention") would apply to interest paid with respect to a debt obligation guaranteed by the Eximbank in connection with financing of the purchase of XXXXXXXXXX In this regard, you referred to a letter issued by XXXXXXXXXX, dated January 24, 1984, (the "January 24, 1984 letter") which you stated did not consider the possible application of Article XI of the 1980 Convention. ... Reciprocal Tax Convention (1942) did not contain a provision similar to paragraph 3(b) of Article XI of the 1980 Convention. At the time the January 24, 1984 letter was written, the 1980 Convention had not yet been ratified (It was later ratified on August 16, 1984). ...

Income Tax Convention (the Convention) in the following hypothetical fact situation: 1.       ... It is your view that Article XI(2) of the Convention provides that the tax is reduced to 15% where the beneficial owner of the interest is a U.S. resident.  In addition, Article XXI(2) of the Convention provides that interest derived by a United States exempt entity will be exempt from Canadian tax. ...

Income Tax Convention (the Convention) in the following hypothetical fact situation: 1. ... It is your view that Article XI(2) of the Convention provides that the tax is reduced to 15% where the beneficial owner of the interest is a U.S. resident. In addition, Article XXI(2) of the Convention provides that interest derived by a United States exempt entity will be exempt from Canadian tax. ...

31 May 1990 Income Tax Severed Letter HBW 4125-N1 HBW 6591-N1 Unedited CRA Tags Canada-Netherlands Income Tax Convention Article 25 HBW 4125-N1 HBW 6591-N1 David R. Senécal (613) 957-2074 May 31, 1990 Dear xxxxx Pursuant to paragraph 4 of Article 25 of the Canada-Netherlands Income Tax Convention signed by our two countries on May 27, 1986, we would like to clarify the application of the said Convention to the following situation: A corporation, which is a resident of Canada for the purposes of the Convention, borrows Canadian dollars from a lender in the Netherlands. ... Consequently, as paragraphs 1 and 2 of Article XI of the Convention only apply to reduce the tax to 15% if the interest arises in one State and is paid to a resident in the other State and the Convention does not contain an "Other Income" article deeming the interest to be taxable only in the Netherlands where it arises, a technical interpretation of the Convention would result in the interest being subject to a 25% tax in Canada even though the interest is paid by the permanent establishment in the Netherlands. ...

Amounts paid by a corporation resident in the United States to a corporation resident in Canada that are deemed to be dividends by and for purposes of the taxation laws of the United States may, by virtue of paragraph 3 of Article X of the Canada-United States Income Tax Convention, 1980 (the "Convention"), be deemed to be dividends for purposes of Article X of the Convention. ... Consistent with paragraph 1 of Article X and paragraph 1 of Article XI and as provided by paragraph 2 of Article XXIX of the Convention, the Convention does not affect the manner in which Canada may tax residents of Canada in respect of interest and dividends and accordingly the taxation of residents of Canada in respect of interest and dividends arising in the United States is to be in accordance with the provisions of the Income Tax Act. We cannot rule out the possibility that a taxpayer may be granted relief from taxation in a particular situation by virtue of the provisions of Article XXVI of the Convention and thus recommend that an application be made pursuant to paragraph 1 of Article XXVI of the Convention where a person considers that the actions of one or both of the Contracting States result or will result for him in taxation not in accordance with the provisions of the Convention. ...

HDB9412- 2- 1- U3 This is in reply to your Memorandum dated January 30, 1991 concerning Article XXI of the Canada-United states Income Tax Convention, 1980 (the "Convention"). ... Paragraph 6 of Article XXI of the Convention applies only in respect of "gifts by a resident of Canada". ... The March 15, 1989 Memorandum pointed out that the relevant provisions of the 1942 Convention applied to both residents of Canada and residents of the United States whereas the 1980 Convention only applies to residents of Canada insofar as provision is made by the conventions (as opposed to the Act) for expanding the type of organizations (to U.S. resident organizations not prescribed by the Act) eligible for creating a deduction (or tax credit). ...

Senécal Attention: XXXXXXXXXX August 15, 1997 Dear Sirs: Re: SICAVs- Canada-Luxembourg Income Tax Convention This is in reply to your letter of May 29, 1996, wherein your requested our views as to whether certain corporate entities established in Luxembourg for investment purposes and known as "sociétés d'investissement à capital variable" (SICAVs) were covered by the provisions of the Canada-Luxembourg Income Tax Convention (the "Convention"). ... We have informed the Luxembourg competent authority that it is our department's position that SICAVs constituted and established in Luxembourg, not being liable to taxation in that State, are not considered by this department as being residents of Luxembourg as defined in paragraph 1 of Article 4 of the Convention and are, therefore, not covered by the provisions of the Convention. ... It should be noted that our department is also of the view that SICAVs constituted and established in France are not residents of France for purposes of the Canada-France Income Tax Convention (the "French Convention"). ...