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Income Tax Convention Position: No. Would only be a resident if LLC elected to be taxed in the U.S. as a domestic C corporation. ... Income Tax Convention (the “Convention”). It is our understanding that U.S. ... LLC, which so elects, would be a resident of the U.S. for purposes of the Convention. ...

Principal Issues: Demande de mise à jour des régimes de pension reconnus aux fins du paragraphe 5 article 29 de la Convention Canada-France. ... XXXXXXXXXX (613) 957-8953 5-982991 Le 14 janvier 1999 Monsieur, Objet: Paragraphe 5 de l’Article 29 de la Convention fiscale Canada-France La présente est en réponse à votre lettre du 2 novembre 1998, par laquelle vous nous demandez si nous partageons votre analyse concernant l'interprétation du paragraphe 5 de l’Article 29 de la Convention entre le gouvernement du Canada et le gouvernement de la République française, signée le 2 mai 1975, telle que modifiée (ci-après la «Convention»). ... Nous sommes heureux de vous annoncer que notre interprétation du paragraphe 5 de l’Article 29 de la Convention est conforme à votre analyse. ...

You have asked if such payments are exempt from Canadian tax under the new Canada-Norway Income Tax Convention (the "Convention"). ... Generally, rental payments received by a corporation resident in Norway from a resident of Canada for the use of moveable property fall under Article 7 (Business Profits) of the Convention, unless such payments are covered by another article of the Convention, in particular Article 12 (Royalties) and Article 21 (Offshore Activities). ... The definition of "royalties" in Article 12 of the Convention does not include rents paid for the use of moveable property and consequently Article 12 does not apply to the payments. ...

En conséquence, vous êtes d'avis que la Convention devrait s'appliquer dans une situation telle que celle décrite précédemment car en vertu du paragraphe 1(II) de la Convention, celle-ci s'applique non seulement aux droits successoraux mais également à tous autres impôts analogues établis sur les successions. ... Malgré le fait que la Convention soit toujours en vigueur, nous sommes d'avis que celle-ci est devenue désuète depuis l'abrogation de l'imposition des droits successoraux au Canada en 1971. ... Cependant, nous nous devons d'interpréter et d'appliquer la Loi et les conventions fiscales telles que rédigées. ...

Reasons: Article 18 of the Canada-Hungary tax convention. XXXXXXXXXX 2005-016060 November 2, 2006 Dear Sir: Re: Social security/state pension benefits from Hungary This is in reply to your letter of November 21, 2005 in which you requested our opinion concerning the taxation of an amount of social security/state pension benefits received by a Canadian resident from the Republic of Hungary. ... Pursuant to subparagraph 4(c) of Article 18 of the Canada-Hungary Tax Convention (the "Convention"), Canada cannot tax pensions and allowances paid under the social security legislation of Hungary and received by Canadian residents so long as the social security payments are not subject to tax in Hungary. ... Where subparagraph 4(c) of Article 18 of the Convention does not apply, Canada may tax a pension and annuity arising in Hungary pursuant to paragraph 1 of Article 18 of the Convention. ...

Our comments Interpretation Bulletin IT-131R2 explains the deduction provided under subsection 20(10) of the Income Tax Act ("the Act") in respect of convention expenses. Paragraph 1 of IT-131R2 defines a convention as a formal meeting of members for business or professional purposes. ... There is no provision in section 8 of the Act that would provide an employee with a deduction for convention expenses. ...

We would point out that this is a different issue than whether Hong Kong is covered by the Canada-China Income Tax Convention (the "Convention") and thereby considered to be part of a "designated treaty country" for purposes of determining "exempt earnings" under our foreign affiliate rules. ... Paragraph 1 of Article 3 (General Definitions) of the Convention defines the term "the People's Republic of China" to mean (for purposes of the Convention) "all of the territory of the People's Republic of China... in which the laws relating to Chinese tax apply...." The term "Chinese tax" is defined in paragraph 1 of Article 2 (Taxes Covered) of the Convention and does not include taxes imposed under Hong Kong's tax regime. ...

This new position is applicable to Conventions in force as of March 28, 2002 and subsequent Conventions that come into force after that date. However, those responses also noted that, for the purposes of Canada's Income Tax Conventions, any payment for computer software will still be a royalty and subject to Article 12 where the definition of "royalty" in a particular Convention refers to "other intangible property". ... Convention. After March 27, 2002 a payment for the use of custom computer software will only be subject to the Royalty Article of a particular Convention if there is a reference to other intangible property in the royalty definition and there is no specific exclusion in the Royalty Article for computer software. ...

These sections of the Act are subject to the provisions of tax conventions between Canada and other countries. 1. ... Under article 18 of the Canada- Switzerland Tax Convention ("Convention") regarding the taxability of pensions, the term "pension" does not include payments made under the social security legislation of a Contracting State. ... Therefore, the Convention does not apply to exempt these types of payments from taxation in Canada. ...

Is such a royalty also exempt from withholding tax under paragraph 3(a) of Article XII of the Canada-US Income Tax Convention? ... Such payments would also be a royalty referred to in paragraph 3(a) of Article XII of the Convention and be exempt from withholding tax under that Convention. ... Nor would such amounts be a royalty referred to in paragraph 3(a) of Article XII of the Convention. ...