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Seidel (613) 957-2058 August 29, 2012 Dear XXXXXXXXXX: Re: Permanent Establishments This is in reply to your January 19, 2012 e-mail wherein you requested our views as to whether subparagraph 9(a) of Article V of the Canada- United States Tax Convention (the “Convention”) applies in the circumstances described below. ... In general, Article V of the Convention provides that, for the purposes of the Convention, the term “permanent establishment” means a fixed place of business through which the business of a resident of a Contracting State is wholly or partly carried on. ... As stated in the Technical Explanation to the 2007 Protocol to the Convention, for the purposes of subparagraph 9(a) of Article V, the method of counting days differs from the method for subparagraph (b). ...

Income Tax Convention that would allow the individual to claim a foreign tax credit for the U.S. ... Income Tax Convention and subparagraph 110(1)(f)(i). Reasons: Interpretation of the Canada- U.S. ... Moreover, Article XXIX-B of the Convention would not provide appropriate relief either. ...

Le paragraphe 1 de l'article 18 de la Convention entre le Canada et la Suisse en vue d'éviter les doubles impositions en matière d'impôts sur le revenu et sur la fortune (la Convention) prévoit que les pensions et rentes sont imposables dans l'État d'où provient la rente et selon la législation de cet État. ... Les expressions pensions et rentes ne sont pas autrement définies dans la Convention. Dans ces circonstances, l'article 3 de la Convention prévoit que toute expression qui n'y est pas définie a le sens que lui attribue le droit de cet État concernant les impôts auxquels s'applique la Convention, à moins que le contexte n'exige une interprétation différente. ...

Generally, the Convention Between Canada and the United States of America With Respect to Taxes on Income and on Capital (the "Convention") may apply to defer or relieve taxation in Canada. Subparagraph 3(b) of Article XVIII of the Convention provides that the term "pensions" generally includes a Roth IRA, within the meaning of section 408A of the Internal Revenue Code. ... Under paragraph 7 of Article XVIII of the Convention, a Canadian resident individual may elect to defer any taxation in Canada with respect to income accrued in a Roth IRA until such time as and to the extent that a distribution is made from the arrangement. ...

23 October 2012 External T.I. 2012-0440101E5- Article X(6) Canada-US Treaty CRA Tags Treaty Article XXIX-A(3) Treaty Article IV(6) 219 Treaty Article X(6) Treaty Article XXIX-A(2) Principal Issues: How does Article X(6) and Article IV(6) of the Canada-United States Income Tax Convention (1980) (the “Treaty”) impact a US limited liability company (“LLC”) carrying on business in Canada through a permanent establishment? ... Pursuant to paragraph 6 of Article IV of the Convention, the Canada Revenue Agency (the “CRA”) will permit a LLC to claim benefits available under Article X(6) on behalf of its members where a member is a qualifying person under paragraph 2 of Article XXIX-A of the Convention or a US resident company entitled to the benefits pursuant to paragraph 3 of Article XXIX-A of the Convention. ... There is no provision in the Convention that is the equivalent of Article X(6) which would reduce the branch tax imposed on the portion of LLC’s branch profits that are considered, by virtue of Article IV(6), to be derived by individual members. ...

Tax Convention. XXXXXXXXXX 2010-038983 J. Nichols January 13, 2012 Dear XXXXXXXXXX: RE: United States Workers' Compensation We are writing in reply to your letter dated October 15, 2010 requesting our view whether payments received from the United States Office of Workers' Compensation Programs (OWCP) are exempt from tax in Canada pursuant to paragraph 1 of Article XVIII of the Canada-US Tax Convention (the "Convention"). ... However, in our view the Payments qualify as "pensions" as defined in subparagraph 3(a) of Article XVIII of the Convention as they are paid "under a sickness, accident or disability plan" as referred to in that definition. Therefore provided that the Payments would be excluded from taxable income in the United States under the provisions of the Internal Revenue Code if the taxpayer were a resident of the United States, they would be exempt from taxation in Canada pursuant to paragraph 1 of Article XVIII of the Convention. ...

PRINCIPALE QUESTION: Le paragraphe 7(1.1) de la Loi s’applique-t-il lorsque une convention conclue par une SPCC et ses employés stipule que les employés pourront acquérir les actions lorsque la société sera devenue une société publique? ... L’existence d’une convention convenant d’émettre des actions est une question de faits. En outre, malgré l’existence d’une convention, s’il n’est pas raisonnable de considérer, à la lumière des faits et de la convention, que l’opération est principalement effectuée pour des objets véritables, le Ministère pourrait examiner l’application de la disposition générale anti-évitement prévue au paragraphe 245(2) de la Loi. ...

However, where such payment is made to a resident of a country with which Canada has an income tax convention, the provisions of the convention must be examined to determine whether such payment is exempted from tax in Canada. ... Income Tax Convention (1980) (the "Convention") and would therefore be exempted from tax in Canada under Article VII of the Convention unless the related income is attributable to a permanent establishment (as defined in Article V of the Convention) that the United States resident has in Canada. ...

Income Tax Convention (the "Convention"). If the NYLLC's mind and management is in Canada, it will qualify as a resident of Canada pursuant to paragraph 1 of Article 4 of the Convention. Being only a resident of Canada for purposes of the Convention, neither paragraph 3 of Article 4 of the Convention nor subsection 250(5) of the Act will apply. ... On the other hand, where the mind and management of the NYLLC is situated in the U.S., resulting in the NYLLC not being considered a resident of Canada for purposes of the Act, it will not be considered as being a resident of either Contracting State for purposes of the Convention, if it is treated as a partnership for purposes of the Code. ...

Principal Issues: Meaning of "property in which the business of the company is carried on" for purposes of Article XIII of Canada-Netherlands Convention, in respect of oil and gas royalties and working interests. ... XXXXXXXXXX 950678 Attention: XXXXXXXXXX August 15, 1995 Dear Sirs: Re: Disposition of Shares by a Non-Resident Article XIII of the Canada-Netherlands Income Tax Convention (the "Convention") We are writing in response to your letter dated March 6, 1995 in which you requested our views on the meaning of "immovable property" in paragraph 4 of Article XIII of the Convention. ... There is an exclusion from the definition of "immovable property" for the purposes of paragraph 4 of Article XIII of the Convention for "property (other than rental property) in which the business of the company,... is carried on". ...