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26 February 2014 External T.I. 2013-0487961E5- Excluded Right or Interest-- summary under Article 15 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 15 apportionment of stock option benefits based on situs of employment during vesting period A senior employee of Canco, who is entitled to receive "free shares" from treasury as determined by management, with a vesting period of 4 to 6 years from the grant of the rights. ... After finding that there would be no deemed disposition of such a right on emigration by virtue of s. 128.1(4)(b)(iii), CRA went on to state, respecting which country has primary taxing rights as the country of source when the shares are issued: CRA has taken the position that for stock options exercised after 2012, the principles set out in paragraphs 12 to 12.15 to the Commentary on Article 15 of the OECD Model Convention will be applied to allocate a stock option benefit for purposes of the Act, unless an income tax treaty specifically applies to produce a different outcome.... ...

Convention A Canadian resident employee, after qualifying for benefits under the unfunded long term disability plan ("LTD Plan") of the Canadian resident employer, becomes a resident of the U.S. ... Convention defines "pensions" to include any payment under a disability plan "a U.S. resident employee receiving LTD Plan payments could file a Canadian income tax return in order to obtain a refund of any withholdings made in excess of the 15% amount specified in paragraph 2 of Article XVIII. ...

Convention A Canadian resident employee, after qualifying for benefits under the unfunded long term disability plan ("LTD Plan") of the Canadian resident employer, becomes a resident of the U.S. ... Convention defines "pensions" to include any payment under a disability plan "a U.S. resident employee receiving LTD Plan payments could file a Canadian income tax return in order to obtain a refund of any withholdings made in excess of the 15% amount specified in paragraph 2 of Article XVIII. ...

21 September 2012 External T.I. 2012-0457951E5- Fee for Information-- summary under Article 12 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 12 information on customer leads was exempted as information on commercial experience CRA was asked whether the payment by a Canadian insurance broker (Aco) to a US insurance broker (Bco) of a percentage of the commissions earned by Aco, as a result of Bco providing Aco with information respecting US customers of Bco who wanted coverage for Canadian assets, would be subject to withholding under Reg. 105 or s. 212(1)(d). ... XII of the Canada-US Income Tax Convention: Where a resident of the U.S. is in receipt of payments for services made in the course of its business carried on in the U.S., it would be exempt from taxation in Canada by virtue of paragraph 1 of Article VII of the Treaty. ...

21 April 2015 External T.I. 2013-0494251E5- 128.1(4) and Part XIII tax on future payments-- summary under Article 12 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 12 client list utilization payments to U.S. resident At the time of his emigration from Canada to the US, "Mr. ... XII, para. 4 of the Canada-US Tax Convention (the "Treaty"). ...

7 March 2012 External T.I. 2011-0427551E5 F- Établissement stable-- summary under Article 5 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 5 presence of employee in Dominican Republic who did not habitually exercise general authority to contract did not constitute a PE Canco entered into supplementary service and support agreements with a corporation resident for all purposes in the Dominican Republic (the “Particular Country”) in order that NRco could provide customer support services to Canco's clients present there. ... CRA stated: [T]he mere presence of the Canco Employee in the Particular Country would not cause there to be a permanent establishment in the Particular Country of Canco under Article V of the Convention. ...

9 October 2020 External T.I. 2020-0847791E5- CEWS 81(1)(a) and treaty exempt entities-- summary under Paragraph (a) Summary Under Tax Topics- Income Tax Act- Section 125.7- Subsection 125.7(1)- Eligible Entity- Paragraph (a) a Treaty exemption for income does not preclude being an eligible entity for CEWS purposes Is a non-resident corporation that operates an airline that normally flies to and from Canada qualify as an “eligible entity” notwithstanding that a part or all of its income may not be included in computing its income for a taxation year by the operation of an applicable Income Tax Convention between Canada and s. 81(1)(a)? ... In our view, a non-resident corporation that operates an airline, a portion of whose Canadian source income is not included in the computation of its income under Part I of the Act as a result of the operation of paragraph 81(1)(a) and a provision under an income tax convention between Canada and another State is not a corporation“ exempt from tax under Part I” under the definition of “eligible entity” in subsection 125.7(1) and therefore would not be prevented from being an “eligible entity” on that basis. ...

12 September 2019 External T.I. 2017-0732681E5- Payment of pension surplus to US resident beneficiary-- summary under Article 18 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 18 Reg. 8503(26) minimum amount payments or commutation payments are lump sums ineligible for reduction under Canada-U.S. ... Treaty, s. 5 of the Income Tax Conventions Interpretation Act “expressly excludes a lump sum payment,” CRA rejected the submission that the “final distribution payment to the daughter is simply an extension of the periodic guarantee payments that the daughter was receiving and thus should be eligible for the reduced withholding tax rate under the Treaty” (so that the non-Treaty reduced rate of 25% applied) stating: [T]he final distribution payment is a lump sum payment of an actuarial surplus that relates to the IPP, which is a permissible distribution pursuant to [Reg.] 8502(d)(vi) …. ...

27 August 2012 External T.I. 2011-0416181E5- US internet publisher- CDN resident advertiser-- summary under Subparagraph 212(1)(d)(iii) Summary Under Tax Topics- Income Tax Act- Section 212- Subsection 212(1)- Paragraph 212(1)(d)- Subparagraph 212(1)(d)(iii) A US website publisher, which qualifies for benefits under the Canada-US Income Tax Convention and does not have a server or other permanent establishment in Canada, enters into an arrangement with an independent Canadian-resident promoter (the "Promoter") under which the Promoter will sell advertising space on the website to Canadian advertisers. ... However, given CRA's interpretation of the fees as being consideration for services, they would not constitute royalties under Article XII of the Canada-US Income Tax Convention, and they would not be taxable under Art. ...

13 April 2017 External T.I. 2015-0601781E5- U.S. tax paid in respect of an LLC's income-- summary under Article 24 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 24 Canada's denial of foreign tax credits re undistributed LLC income is consistent with Art. 24 of Canada-US Treaty A Canadian-resident individual who is a member of a U.S. ... In particular, after noting that the OECD Commentary on Art. 23B of the Model Convention “expressly contemplates that states may impose timing restrictions on claiming foreign tax credits,” and that where this is so “these countries…would be expected to seek other ways…to relieve the double taxation which might otherwise arise in [such] cases,” CRA stated: In the case of Canada, such “other ways … to relieve the double taxation” include deductions allowed under subsections 20(11) and 20(12) of the Act. ...