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The Queen, 85 DTC 5188, [1985] 1 CTC 163 (FCTD)-- summary under Income Tax Conventions Summary Under Tax Topics- Treaties- Income Tax Conventions Tax Treaty should be accorded a liberal interpretation "Contrary to an ordinary taxing statute a tax treaty or convention must be given a liberal interpretation with a view to implementing the true intentions of the parties". ...

The Queen, 79 DTC 5340, [1979] CTC 424 (FCTD)-- summary under Income Tax Conventions Summary Under Tax Topics- Treaties- Income Tax Conventions The court considered an admission of an officer of the Department of National Revenue, who was examined for discovery, that a change in the standard wording of a provision of the treaties negotiated by Canada did not represent a change in policy by the Government of Canada. ...

Canada (Attorney General), 2015 FC 1082-- summary under Article 27 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 27 FATCA information exchanged automatically irrespective of any substantive U.S. tax liability was "relevant" to U.S. tax administration Ginny Hillis, who was born in the U.S. to Canadian-citizen parents and came to Canada when she was five, brought an action for a declaration that the Canadian FATCA legislation (i.e., the Canada-United States Enhanced Tax Information Exchange Agreement Implementation Act (enacting an intergovernaental agreement) and ss. 263 to 269 of the Income Tax Act) was void as unconstitutional and that the disclosure of taxpayer information under such legislation should be restricted rather than automatic in light of the provisions of the Canada U.S. Income Tax Convention (the "Convention") and s. 241 of the ITA. ... Before dismissing the motion, Martineau J rejected a submissions that "the account holder information collected by the reporting institutions on US persons… must… be shown to 'be relevant' for carrying out the provisions of the [Convention]…[as] the ‘may be relevant' test mentioned in Article XXVII of the [Convention] must be satisfied on a case by case basis" (para. 59) and, in particular, "since most US persons resident in Canada do not owe taxes to the US…their account holder information is of no relevance… and therefore does not fall within the scope of information that may be disclosed pursuant to Article XXVII" (para. 60), stating (at paras. 70-71) that: It is…unreasonable to conclude that the governments of Canada and the US entered into an Intergovernmental Agreement which should be interpreted in a way that renders it practically impossible to perform. ...

Canada (Attorney General), 2015 FC 1082-- summary under Article 26A Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 26A Art. 26 of US Convention did not prohibit FATCA information exchanges One of the challenges brought by the appellant to the Canadian FATCA legislation (i.e., the Canada-United States Enhanced Tax Information Exchange Agreement Implementation Act and ss. 263 to 269 of the Income Tax Act) was that "to the extent that Canada's disclosure of account holder information to the US constitutes 'assistance in collection,' Canada is prohibited [by Art. ... Convention] from disclosing such information as it relates to Canadian citizens…[so that] account holder information should not be disclosed in cases in which the taxpayer was a Canadian citizen at the time the revenue claim arose" (para. 58). ...

The Queen, 85 DTC 5188, [1985] 1 CTC 163 (FCTD)-- summary under Article 13 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 13 deemed disposition The "sale or exchange" of capital assets under Article VIII of the 1942 Canada-U.S. Convention included a deemed disposition of capital property under s. 70(5)(a) of the Act. ...

The Queen, 92 DTC 6480, [1992] 2 CTC 198 (FCTD)-- summary under Article 4 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 4 A Panamanian corporation was resident in Switzerland for purposes of the Canada-Swiss Convention given that its Panamanian incorporation was "a mere flag of convenience" (p. 6486), that its directors were Swiss and that the corporation was managed from Switzerland, with the exception of negotiations carried out on its behalf in Montreal by a Canadian lawyer. ...

Canada (National Revenue), 2009 FC 434-- summary under Article 4 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 4 In finding that a Barbados trust was resident in Barbados and not in Canada for purposes of the Barbados-Canada Income Tax Convention, Simpson, J., after noting Crown arguments that the trust potentially might be deemed to be resident in Canada under s. 94, stated (at para. 37) that the trust met "the physical criteria associated with actual residence of the kind described in Article IV, paragraph 1, of the Treaty which speaks of 'domicile', 'place of management' and 'criterion of a similar nature'. ...

The Queen, 90 DTC 6481, [1990] 2 CTC 247 (FCTD), aff'd 92 DTC 6473 (FCA)-- summary under Article 15 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 15 While resident in Canada, the taxpayer was granted rights under the employee stock option plan of his Canadian employer and further rights (the "share appreciation rights") to be paid amounts based on the appreciation in the shares of his employer over the strike price in lieu of exercising his stock option rights. ... -Canada Convention. The presumption in s. 7(4) of the Act that the employment in issue was exercised in Canada was not incompatible with Article 15. ...

The Queen, 92 DTC 6480, [1992] 2 CTC 198 (FCTD)-- summary under Article 6 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 6 A Canadian mortgagee of a Montreal property whose owner was in default granted the taxpayer, a non-resident corporation, an option to purchase whatever interest the mortgagee acquired in the property with the mortgagee retaining the right to rescind that option agreement by paying the taxpayer a lump sum of $250,000. That sum, when received by the taxpayer following rescission of the agreement by the mortgagee, did not constitute income of the taxpayer from immovable property for purposes of the Canada-Swiss Convention given that the mortgagee did not own the property at the time of the negotiations but merely held a hypothec on the property, i.e., "it was not a jus in rem which would have entitled the defendant to specific performance in the event of default" (p. 6486). ...

The Queen, 79 DTC 5340, [1979] CTC 424 (FCTD)-- summary under Article 10 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 10 A Canadian company shifted its central management and control to the Netherlands, thereby becoming a resident of the Netherlands for purposes of the 1957 Canada-Netherlands Convention, and then paid a stock dividend to its shareholders. ...