Search - convention

1 June 2009 External T.I. 2009-0319481E5- Dividends Paid to S Corporation-- summary under Article 4 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 4 The Canadian rate of withholding tax on a dividend paid by a Canadian corporation, that is fiscally transparent for U.S. purposes, to an S Corp of which an individual resident of the U.S. is the shareholder, will be subject to a 25% withholding tax due to Article IV(7)(b) of the Canada-U.S. Convention. Furthermore, Article IV(6) will not apply to treat the dividend as being derived by the shareholder of US Co because for U.S. purposes the shareholder will not be considered to have derived a dividend through US Co given the fiscally transparent nature of the Canadian corporation. ...

8 April 2003 External T.I. 2003-000199-- summary under Article 13 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 13 After referring to Bromley v. ... Convention generally requires that more than 50% of the value of the shares being alienated be derived from immovable property or a right referred to in paragraph 4 of Article 13 in order for paragraph 5(a) to apply. ...

Treaty-- summary under Article 22 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 22 where Canco receives a guarantee (in respect of a loan made to Canco by a third party or Canco's indirect Canadian parent) for no consideration from a US sister company, the resulting interest payment imputed to be made by Canco under ss. 247(2) and 214(15)(a) will be exempted under Art. ... XI(1) of the Canada-US Income Tax Convention given that the former "was intended to deal with guarantee fees over the other Articles in the Treaty. ...

CRA indicated that such a trip is not a "convention" under s. 20(10). As per para. 11 of IT-131R2, CRA does not consider intra-company meetings, seminars, courses, etc. to be conventions from the employees' perspective. ...

24 September 2014 External T.I. 2014-0543071E5 F- Article XIII of the Canada-France Treaty-- summary under Article 13 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 13 taxation by Canada and France of gain from immovable An individual resident in Canada, who held the bare ownership of French immovable property, disposed of the property at a gain. ... XIII, para. 1(a) of the France-Canada Convention to tax the gain, which did not trench on the right of Canada to also tax the gain under ITA.s 2(1), although on the satisfaction of certain conditions, a foreign tax credit would be available. ...

20 March 2015 External T.I. 2014-0534301E5- Canadian Withholding Tax on Retiring Allowance-- summary under Article 15 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 15 retiring allowance paid to French individual for loss of non-resident employment A lump sum payment in compensation for a loss of employment at a French subsidiary is made by Canco to a non-resident of Canada who had been seconded to the subsidiary. CRA found that although s. 212(1)(j.1) would apply to this payment, it would be exempt under Art. 15 of Canada-France Convention, as not being in respect of employment exercised in Canada, or Art. 21 as not being derived from sources in Canada. ...

20 March 2015 External T.I. 2014-0534301E5- Canadian Withholding Tax on Retiring Allowance-- summary under Article 22 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 22 retiring allowance paid to French individual for loss of non-resident employment A lump sum payment in compensation for a loss of employment at a French subsidiary is made by Canco to a non-resident of Canada who had been seconded to the subsidiary. CRA found that although s. 212(1)(j.1) would apply to this payment, it would be exempt under Art. 15 of Canada-France Convention, as not being in respect of employment exercised in Canada, or Art. 21 as not being derived from sources in Canada. ...

15 March 2006 External T.I. 2005-0124911E5 F- Prestation compensatoire française-- summary under Article 21 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 21 non-taxability of lump sum compensation allowance under French law not altered by Art. 21 CRA found that a lump sum paid in two instalments paid as a “compensatory allowance” under French law by a French-resident ex-spouse of the Canadian-resident taxpayer was not includible in her income as a “support amount,” as defined in ITA s. 56.1(4). CRA found that this result was not altered by other-income Article (Art. 21) of the Canada-France Convention. ...

6 September 1995 External T.I. 9518895- WITHHOLDING TAX-- summary under Article 12 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 12 RC accepts that royalties paid for the use of, or the right to use, know-how as defined in paragraph 11 of the Commentary on Article 12 of the OECD Model Income Tax Convention constitute payments for the use of, or the right to use, information concerning industrial, commercial or scientific experience. ...

18 March 2002 External T.I. 2002-0120065 F- Avoir fiscal français- 20(11)-- summary under Article 10 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 10 subsequent refund to Canadian shareholder of French avoir fiscal treated as a dividend payment for dividend withholding purposes A Canadian-resident received a $10,000 dividend from a French company as reduced by French withholding tax of 15% ($1,500) and by the 50% avoir fiscal (tax credit) withheld by the French company. ... CCRA indicated that the subsequent payment of the avoir fiscal would also be considered to be a dividend for purposes of the Canada-France Convention and would be subject to 15% withholding. ...