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Income Tax Convention (the "Convention"), such payee will be exempt under Article VII of the Convention from Canadian tax on the business profits earned from the provision of the services unless the payee carries on business in Canada through a permanent establishment in Canada and the profits are attributable to such permanent establishment.  A payee who is exempt from Canadian taxation by virtue of Article VII of the Convention may obtain a refund of taxes withheld under Regulation 105(1) by filing a Canadian tax return.  It should be noted that Article VII of the Convention does not prohibit the initial withholding under Regulation 105(1) but a payee who is exempt from Canadian tax by virtue of Article VII may apply for a refund of the taxes withheld. ...

Traditional IRA CRA Tags 56(1)(a)(i)(C.1) 56(12) Treaties Article XVIII(7) Principal Issues: Whether an election is needed to defer tax on undistributed income accrued in a Traditional IRA per Article XVIII (7) of the Canada-US Tax Convention. ... Our Comments Under paragraph 7 of Article XVIII of the Canada-United States Tax Convention (1980) (the “Convention”), a Canadian resident who is a beneficiary of a tax-exempt plan in the United States that qualifies as a pension for purposes of the Convention may elect to defer taxation in Canada with respect to income accrued in the plan, until such time as and to the extent that a distribution is made from the plan. ...

Position: Taxable pursuant to paragraph 56(1)(a) of the Act and deduction of 15% of the gross benefit pursuant to Canada-United States Tax Convention and paragraph 110(1)(f) of the Act. ... Pursuant to paragraph XVIII(5) of the Canada-United States Tax Convention, only 85% of the payments received under United States social security legislation by a Canadian resident is taxable in Canada and the said payments are tax exempt in the United States. ... In addition, the children are not taxable on 15% of the gross benefit by virtue of paragraph 5 of Article XVIII of the Canada-United States Income Tax Convention (the Treaty) and paragraph 110(1)(f) of the Act. ...

Reasons: As provided in paragraph 2 of Article XXIV of the Canada-U.S. tax convention, Canada agreed to give a foreign tax credit for payments, in the case of an individual, of any social security taxes paid to the United States (other than taxes relating to unemployment insurance benefits) on profits, income or gains arising in the United States. In our view, the term "social security taxes" in that convention is broad enough to include Tier 1 railroad retirement taxes but not Tier 2. ... In our view, the term "social security taxes" in the Canada-U.S. tax convention is broad enough to include Tier 1 railroad retirement taxes but it does not include Tier 2 railroad retirement taxes. ...

Position: Oui Reasons: Pas d'exception A leur égard dans la convention fiscale entre le Canada et la Grande Bretagne 5-973064 XXXXXXXXXX Marie-Marthe Gagnon (613) 957-8953 April 23, 1998 Dear XXXXXXXXXX: Re: Tax Treaty with the United Kingdom- Employment Income in Canada This is in reply to your letter of November 6, 1997, in which you requested information regarding your tax liability in Canada and the Canada-United Kingdom Income Tax Convention (hereafter the “Convention”). ... As regards your employment income as a teacher at a university in Canada, our view is that it would be taxable as income earned in Canada under the Act notwithstanding your residency status or the Convention. ...

Principal Issues: For purposes of article 17 of the Canada, UK Income Tax Convention, are amounts received from a UK personal pension scheme, pension or annuity income. ... You have asked us to state whether amounts paid out of a UK PPS will be pension or annuity income for the purposes of Article 17 of the Canada, UK Income Tax Convention. ... We can also note that this factor will not preclude these plans from being retirement plans for the purposes of the Canada, UK Tax Convention. ...

Position: Oui Reasons: Pas d'exception A leur égard dans la convention fiscale entre le Canada et la Grande Bretagne 5-973064 XXXXXXXXXX Marie-Marthe Gagnon (613) 957-8953 April 23, 1998 Dear XXXXXXXXXX: Re: Tax Treaty with the United Kingdom- Employment Income in Canada This is in reply to your letter of November 6, 1997, in which you requested information regarding your tax liability in Canada and the Canada-United Kingdom Income Tax Convention (hereafter the “Convention”). ... As regards your employment income as a teacher at a university in Canada, our view is that it would be taxable as income earned in Canada under the Act notwithstanding your residency status or the Convention. ...

XXXXXXXXXX 950372 May 15, 1995 Dear XXXXXXXXXX: Re: Lump Sum Pension Payment This is in reply to your letter of February 2, 1995, in which you ask why a lump sum payment from a U.K. pension plan received in or after July 1994 is subject to income tax under the Income Tax Act (Canada) (the "Act") and not exempt from taxation under the Canada-United Kingdom Income Tax Convention (the "Convention"). ... The Convention was concluded, in part, to avoid double taxation. It determines which of the two countries has the right to tax an amount which arises in one country and is received by a taxpayer who resides in the other country. You advise that the lump sum payment was not subject to tax in the U.K. and, therefore, the Convention is inapplicable. ...

Income Tax Convention (1978) (the “Convention”), pensions arising in a Contracting State (in your case, the U.K.) and paid to a resident of the other Contracting State (if you reside in Canada) shall be taxable only in that other State (Canada). For purposes of the Convention, the term “pension” is defined to include any payment under a superannuation, pension or retirement plan, Armed Forces retirement pay, war veterans pensions and allowances, and any payment under a sickness, accident or disability plan, as well as any payment made under the social security legislation in a Contraction State (in your case, the U.K.), but does not include any payment under a superannuation, pension or retirement plan in settlement of all future entitlements under such a plan or any payment under an income-averaging annuity contract. You may want to confirm with the U.K. tax authorities that your pension qualifies as a pension for purposes of the Convention. ...

Question 3 Vous demandez si la disposition des terrains par la société anonyme par l'intermédiaire de la société immobilière ne sera imposable qu'en France conformément à l'article VI de la Convention fiscale Canada-France (1975) (la "Convention"). ... La Convention n'aurait donc pas à être invoquée pour éviter la double imposition. ... Toutefois, en vertu de l'article XXIII de la Convention, puisque ce gain serait réputé selon le paragraphe 3 de l'article XXIII de la Convention provenir de la France, le Canada devrait accorder un crédit d'impôt en vertu l'alinéa 1(a) de l'article XXIII de la Convention. ...